Nigeria has emerged as the leading destination for oil and gas investments in Africa in 2024, according to a new report.
- Nigeria leads as the top destination for oil and gas investments in Africa in 2024
- Nigeria accounted for three out of four Final Investment Decisions announced by global oil and gas majors
- Total Final Investment Decisions (FIDs) amounted to around $13.5 billion
The report by market intelligence firm Wood Mackenzie revealed that Nigeria accounted for three out of four Final Investment Decisions (FIDs) announced in 2024 by global oil and gas majors. The total Final Investment Decisions (FIDs) was around $13.5 billion.
According to the report, the FIDs announced within the Nigerian market included Shell’s $122 million project 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 commended Nigeria for adopting investor-friendly policies and pursuing strategic global partnerships that allow it to fully unlock its hydrocarbon potential.
The Nigerian government introduced many initiatives last year to foster investments in the oil and gas sector. Among these initiatives was the introduction of tax incentives aimed at attracting up to $10 billion in natural gas investments.
To further showcase its commitment, the authorities also introduced initiatives aimed at reducing the costs and time taken to award contracts, which is expected to make the country even more attractive for investments.
Nigeria will hold a fresh oil licensing round in 2025 focused primarily on handing out blocks that remained undeveloped. The government plans to collaborate with local and international partners to generate investments in 2025. For example, TotalEnergies plans to invest $750 million in 2025.
