Toba Owojaiye reporting
Abuja, Nigeria
Nigeria’s economic landscape is showing signs of recovery, with significant foreign investment inflows into the oil and gas sector. The Nigerian National Petroleum Company Limited (NNPC) has disclosed that reforms in the sector—driven by the Petroleum Industry Act (PIA) 2021 and recent Executive Orders from President Bola Ahmed Tinubu—have attracted about $17 billion in foreign investments in 2024.
Truth Live News gathered that the Executive Vice President, Upstream, Mr. Udy Ntia, made this known during an investor session at the 2025 CERAWeek by S&P Global in Houston, Texas, USA. He highlighted that the reforms have streamlined the regulatory framework, making it more attractive for investors by offering incentives such as cost recovery mechanisms, flexible royalty payments, and profit-sharing agreements.
Nigeria’s economic challenges in recent years, exacerbated by oil price volatility, inflation, and currency depreciation, have necessitated bold reforms. The implementation of the PIA, along with strategic policies under Tinubu’s administration, has enhanced transparency and stability in the oil sector, making it a critical driver of economic recovery.
Ntia emphasized that Nigeria is now an investor-friendly destination, leveraging its vast natural resources to attract international capital. “For us in Nigeria, despite global energy security concerns, including those in Europe, we see significant opportunities. We have strategically positioned our assets to leverage the current strong price environment, which has remained favourable over the past two to three years,” he stated.
One of the primary focuses of the investment drive is Nigeria’s refining capacity. The country is keen to reduce its reliance on imported petroleum products by expanding its refining sector. The completion of the Dangote Refinery and ongoing modular refinery projects align with this objective, ensuring that more of Nigeria’s crude is refined domestically.
Additionally, Nigeria is looking to harness its vast gas reserves—estimated at 207 trillion cubic feet—to fuel industrialization and economic growth. The NNPC is collaborating with global energy giants like Shell, ENI, and Total to expand gas infrastructure, including the Liquefied Natural Gas (LNG) Train 7 project and domestic pipeline networks.
“Gas will play a critical role in Nigeria’s energy future. We are expanding our gas infrastructure in collaboration with partners such as Shell, ENI, and Total. Our LNG Train 7 project is advancing, and we are investing in domestic pipeline networks to meet local energy demands,” Ntia explained.
Beyond oil and gas, Nigeria’s economic recovery is being supported by diversification efforts, including investments in agriculture, technology, and infrastructure. However, the oil sector remains a critical source of revenue, and the recent $17 billion investment influx is expected to have ripple effects across various industries, from job creation to increased government revenue.
The government is also keen to attract investors from China and India, given their strong interest in Africa’s energy resources. Ntia reassured investors that Nigeria offers “a stable democracy, improved security, and a business-friendly regulatory framework,” making it an attractive destination for long-term partnerships.
While these investments mark a positive step, Nigeria still faces structural economic challenges, including exchange rate volatility and inflation. The success of these oil sector reforms will depend on sustained policy consistency, security improvements in oil-producing regions, and transparent implementation of agreements with investors.
As Nigeria positions itself as a key player in the global energy market, the renewed confidence in its oil sector signals a broader economic turnaround. The challenge now lies in ensuring that these investments translate into real economic benefits for Nigerians, reducing unemployment and fostering sustainable growth.
With $17 billion in foreign investments flowing into the oil sector, Nigeria’s economic recovery is gaining traction. The combination of regulatory reforms, increased refining capacity, and a focus on gas development is positioning the country for long-term economic growth. However, sustained policy consistency and addressing lingering economic challenges will be key to translating these gains into broader prosperity.