Nigeria emerges as Africa’s top energy investment destination, driven by Tinubu administration reforms and over $10bn in new capital inflows

Nigeria has emerged as the leading destination for energy investments in Africa over the past two years, driven by sweeping reforms introduced under the administration of President Bola Ahmed Tinubu, according to a new government report.

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The report, which covers a three-year review of the energy sector from 2023 to 2026, shows a significant rise in capital inflows into the country after years of declining investor confidence caused by policy uncertainty and underinvestment.

It revealed that Nigeria’s share of upstream Final Investment Decisions in Africa rose from about 4 per cent to 40 per cent between 2024 and 2025, positioning the country ahead of several traditional energy markets on the continent.

The document, endorsed by the Presidency and linked to the Office of the Special Adviser to the President on Energy, Olu Verheijen, credited the gains to coordinated fiscal and regulatory reforms aimed at improving investor confidence.

According to the report, more than $10 billion in upstream investment decisions were recorded during the period, particularly in deep offshore and integrated gas projects.

Key reforms included executive directives that clarified regulatory responsibilities, improved tax incentives for deepwater oil production, and introduced measures to streamline project approvals and reduce contracting timelines.

The report stated that these interventions helped restore credibility in the sector and reposition energy as a key driver of growth, employment, and national development.

A major development highlighted was the completion of about $4 billion in divestment transactions by international oil companies, transferring key assets to indigenous operators.

Companies involved in the asset transfers include Shell, ExxonMobil, Agip, and Equinor, with local firms such as Seplat, Oando, Renaissance, and Chappal now taking over operations.

Oil production also recorded notable growth, rising from about 1.2 million barrels per day in 2023 to approximately 1.6 million barrels per day in 2025, marking one of the strongest outputs in two decades.

The report further projected a long-term production target of three million barrels per day, supported by ongoing investments and improved operational conditions.

In the gas sector, utilisation increased by about 40 per cent, reinforcing its role in industrialisation, export growth, and domestic energy supply.

Downstream improvements were also recorded, with local refining capacity increasing significantly and contributing to improved fuel availability across the country.

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The report concluded that Nigeria’s reforms have strengthened its competitiveness, making it the top destination for oil and gas investment in Africa and restoring investor confidence in the sector.