Nigeria Attracts $18.2bn in Oil Investments, Approves 28 Field Development Plans

The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has revealed that Nigeria recorded a major investment milestone in 2025 with the approval of 28 new field development plans valued at $18.2bn, carrying an estimated production potential of 1.4 billion barrels of oil.

Lokpobiri made the disclosure on Tuesday in Abuja while delivering his ministerial address at the opening of the 9th Nigeria International Energy Summit 2026. He said Nigeria had emerged as Africa’s top destination for oil and gas investments, noting that four of the seven major Final Investment Decisions (FIDs) announced across the continent between 2024 and 2025 were secured by Nigeria.

The Nigeria International Energy Summit serves as the Federal Government’s official annual platform for energy policy discussions, investment promotion, and innovation. The 2026 edition is themed “Energy for Peace and Progress: Securing Our Shared Future.”

According to the minister, the investment gains were the result of deliberate reforms, improved policy clarity, and stronger governance, which have collectively helped restore investor confidence in the oil and gas sector. He said the renewed capital inflows signal Nigeria’s return to the global energy investment stage after years of stalled projects and declining output, adding that recent fiscal, regulatory, and operational reforms are now delivering tangible results.

Lokpobiri said Nigeria’s progress must be viewed within the broader African context, stressing that the continent’s energy fortunes are interconnected. He noted that the country’s ability to attract major investments was driven by sustained policy reforms, improved governance, and an investment climate that allows the free movement of capital.

He recalled that when the current administration assumed office, Nigeria’s upstream sector was in decline, characterised by falling production, weak investor confidence, and a lack of major new projects. While acknowledging Nigeria’s vast hydrocarbon resources across deepwater, shallow, and onshore terrains, he emphasised that resource abundance alone was not sufficient.

According to him, what now sets Nigeria apart is the legal, regulatory, financial, and structural transformation underway, which has improved clarity, predictability, efficiency, and incentives for investors. He said these changes have repositioned the country as investment-ready, following more than a decade without significant final investment decisions.

The minister attributed the turnaround largely to the full implementation of the Petroleum Industry Act, which he said has introduced a stable fiscal regime, clearer licensing processes, stronger regulation, and predictable contract terms. He added that upstream cost pressures were further addressed through the Upstream Petroleum Operations (Cost Efficiency Incentives) Order 2025, which provides tax credits and reduces unit operating costs for producers.

Lokpobiri also highlighted the impact of Project One Million Barrels, launched in October 2024, noting that within a year, crude oil production had increased to between 1.7 million and 1.83 million barrels per day—about a 20 per cent rise from previous levels. He said the number of active rigs increased from 14 in 2023 to over 60, reflecting renewed activity and optimisation of idle assets.

He further noted the successful completion of long-delayed asset divestments by international oil companies, which transferred onshore and shallow-water assets to Nigerian firms. These divestments, he said, added about 200,000 barrels per day to national output and were concluded in record time under President Bola Tinubu’s administration.

However, the minister acknowledged that challenges remain, particularly in the oil and gas services sector. He said structural constraints persist in the engineering, procurement, and construction segment, partly due to a misinterpretation of the Nigerian Oil and Gas Industry Content Development Act. This, he noted, led to the emergence of weak EPC firms while sidelining experienced international contractors and capable indigenous companies.

Lokpobiri also drew attention to Africa’s annual $120bn hydrocarbon import bill, describing it as a missed opportunity and calling for stronger support for the African Energy Bank, which is headquartered in Nigeria. He stressed that addressing Africa’s energy challenges requires collective responsibility and decisive action.

Meanwhile, the Independent Petroleum Producers Group has called for urgent reforms to sustain growth in Nigeria’s oil and gas sector, including streamlined industry fees, reduced bureaucracy, and improved access to long-term financing.

In a keynote address, IPPG Chairman and Aradel Holdings CEO, Adegbite Falade, described the summit as solution-focused and timely, noting that global energy dynamics are being reshaped by conflicts, shifting alliances, and rising energy insecurity. He said Nigeria and the wider African region are not insulated from these pressures.

Falade noted that Nigeria’s oil and gas industry has recorded notable progress, with indigenous producers and independents now accounting for more than 50 per cent of national output for the first time. He attributed this to improved pipeline availability, reduced crude losses, and stronger local participation.

He stressed the need to create an industry environment where private capital can drive infrastructure development, warning that excessive bureaucracy, high operating costs, and limited access to affordable long-term capital continue to undermine competitiveness.

Stakeholders at the summit agreed that Nigeria’s oil and gas sector is on a recovery path, driven by clearer policies, regulatory reforms, and strategic investments. They emphasised that sustained collaboration among government, indigenous operators, and international partners is critical to consolidating gains, expanding domestic energy access, and positioning Nigeria as a regional and global energy hub.