Nigeria reclaimed top spot in Africa’s oil and gas upstream investment ranking in 2024

Nigeria reclaimed its position as a leading destination for oil and gas investments in Africa in 2024, according to a new report by market intelligence firm Wood Mackenzie, which highlighted the key role of floating LNG in boosting the efficiency of gas production.
Nigeria accounted for three out of four Final Investment Decisions (FIDs) announced last year by global oil and gas majors, totaling $13.5 billion, the report revealed. The West African nation topped the ranking in the continent’s upstream capital expenditure (capex) for 2024, overtaking Angola, owing to a number of major deepwater developments and sustained activity in its rich offshore basins. Among the key investments within the Nigerian market last year are Shell’s $122 million investment in the Iseni Gas Project, TotalEnergies’ $566 million investment in the Ubeta Gas Project and Shell’s approval of the Bonga North Tranche 1 project.
The report also commended Nigerian government for recently implementing policy changes aiming to create investor-friendly business environment, which include tax incentives and streamlined contract awarding processes. According to Olu Verheijen, the special adviser on energy to president Bola Tinubu, Nigeria’s excellent performance in the sector is directly linked to the approval of five important presidential directives and fiscal incentives introduced last year. “These transformative measures are not only reshaping Nigeria’s energy landscape but also setting the stage for unprecedented levels of investment in 2025 and beyond, reaffirming Nigeria’s role as a powerhouse in Africa’s energy sector,” Verheijen noted.