As the G20 Africa Energy Investment Forum fast-approaches, major African oil and gas producers such as Nigeria are gearing up to bring their strategic energy agendas to a global audience. Nigeria’s Special Advisor to President Bola Tinubu on Energy Olu Verheijen has joined the forum – taking place November 21 in Johannesburg – where she is expected to share insight into how the country’s recent slate of reforms is not only attracting foreign investment into the energy value chain but are positioning Nigeria as a benchmark for African nations as they pursue a hydrocarbon-driven energy transition.

As one of the continent’s biggest oil and gas producers, Nigeria has been realigning policy with the aim of accelerating exploration, reversing production decline and unlocking greater value from both onshore and offshore hydrocarbon basins. Recent reforms include the introduction of the “Upstream Petroleum Operations” (Cost Efficiency Incentives) Order this year, offering performance-based tax credits to oil and gas companies that achieve cost-reduction targets. The policy aims to lower operational costs, enhance the sector’s attractiveness while attracting investment into upstream projects. It also follows the implementation of the Petroleum Industry Act (PIA) in 2021, which overhauled sector governance, unbundled the Nigerian National Petroleum Company into a commercially-oriented entity and established a modernized regulatory framework to attract capital and foster sustainable growth.

The impact of these reforms has already been evident. Since the enactment of the PIA, Nigeria has catalyzed over $17 billion in foreign direct investment into its oil and gas industry, reflecting renewed global confidence in the market. The country has also witnessed a surge in spending from active operators, including a $1.5 billion investment by ExxonMobil to revitalize its Usan deepwater oilfield; $5 billion FID reached for Shell’s Bonga North Deepwater Development; and a $550 million investment by TotalEnergies to develop a gas processing facility. These investments follow a series of merger and acquisitions in 2024, with the country attracting $6.7 billion in investments throughout the year, driven by acquisitions by Seplat, Chappal Energies and Oando. These developments are aligned with Nigeria’s broader goal to increase production upwards of two million barrels per day.

Nigeria’s energy strategy transcends the oil industry, showcasing a diverse and multi-faceted development approach that considers all forms of energy. Part of its National Energy Transition Plan – which aims to advance low-carbon and sustainable energy projects – the country has set a goal to increase gas production to 12 billion cubic feet per day by 2030 and is seeking $60 billion over the next five to seven years to strengthen the gas value chain. With over 200 trillion cubic feet of proven gas reserves, Nigeria’s gas sector has become a key priority for the nation’s development agenda.

In the renewable energy sector, the country has established a ’30-30-30’ plan, targeting 30 GW of grid-connected power capacity by 2030, 30% of which will be derived from renewable energy sources. The plan comes as the country pursues net-zero by 2060 and is expected to contribute towards its goal of achieving universal access to electricity. Various projects have been launched to realize this goal. Oando Clean Energy is developing a 1.2 GW solar farm in Jigawa; the World Bank is backing the $750 million Distributed Access through Renewable Energy Scale-up project, set to provide power to over 17.5 million Nigerians; while the Rural Electrification Agency of Nigeria has signed agreements with 10 companies for the generation of 948 MW of electricity. These developments are not only set to strengthen the country’s power capacity but create thousands of jobs and support local business development.

“Nigeria’s energy reforms are setting a powerful precedent for what African-led policy can achieve. By fostering transparency, incentivizing investment and prioritizing both hydrocarbons and renewables, Nigeria is showing that energy security and transition are not competing goals; they are complementary drivers of growth,” states NJ Ayuk, Executive Chairman, African Energy Chamber.

Nigeria’s multi-faceted energy strategy aligns closely with the upcoming forum, which aims to promote an Africa-centric approach to the energy transition. Recognizing the continent’s vital need to power and industrialize its economies, the G20 Africa Energy Investment Forum will offer a bridge between global capital and African projects, tackling key topics such as the role of natural gas, the value of integrated energy systems and how African oil producers can drive the continent’s energy transition. 

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