Nigeria’s upstream oil and gas sector has recorded a significant investment boost, with the country’s share of African upstream Final Investment Decisions (FIDs) rising from just 4 per cent before 2023 to approximately 40 per cent across 2024 and 2025, according to the Special Adviser to the President on Energy, Mrs. Olu Arowolo Verheijen.
Speaking at the Nigerian-British Chamber of Commerce Energy Day, Verheijen attributed the sharp increase in investment activity to ongoing reforms and policy interventions introduced by the Federal Government to improve the business environment in the energy sector.
She disclosed that the reforms have triggered a substantial inflow of foreign capital and accelerated financial restructuring efforts within Nigeria’s power and energy industries.
According to her, the renewed investor confidence has already secured about $10 billion in committed capital, while an additional $50 billion investment pipeline is expected in the coming years.
Verheijen described the development as a major turning point for Nigeria’s oil and gas industry, noting that recent presidential directives aimed at reducing the cost of doing business have enhanced the country’s competitiveness and attractiveness to global investors.
“The country’s share of African upstream Final Investment Decisions has grown significantly, reflecting renewed confidence in Nigeria’s energy sector and the effectiveness of ongoing reforms,” she said.
The presidential adviser also highlighted efforts by the Federal Government to address longstanding financial challenges in the electricity sector through the Presidential Power Sector Debt Reduction Programme.
She revealed that the government has successfully issued a ₦501 billion Series 1 bond to settle outstanding debts owed to electricity generation companies (GenCos), a move expected to improve liquidity across the power value chain.
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According to Verheijen, a second bond issuance valued at ₦729 billion will be released shortly to complete the first phase of the debt repayment programme.
She explained that the initiative is designed to restore financial stability to the power sector, enhance operational efficiency, and create a more sustainable framework for electricity generation and distribution in the country.
Industry stakeholders at the event noted that the combination of increased upstream investments and efforts to resolve power sector debt challenges could strengthen Nigeria’s energy security, stimulate economic growth, and position the country as a leading destination for energy investment in Africa.
