Nigeria’s Energy Reforms Spark $5.3bn Surge in Upstream Oil and Gas Investment

Nigeria has regained its place as the leading destination for energy investment in Sub‑Saharan Africa, attracting $5.3 billion in upstream capital in 2025, according to the Special Adviser to the President on Energy, Olu Verheijen.

Verheijen said the inflows came even as upstream investment across the region fell by 18 per cent — a sign that confidence in Nigeria’s energy sector is growing.

Before recent policy changes, Nigeria captured only 4 per cent of Africa’s major energy project sanctions between 2015 and 2023. Under new reforms, that share has jumped dramatically, with the country now accounting for 38 per cent of major project approvals on the continent in the past two years.

A key driver of the investment boost is the Shell–Sunlink HI gas project (OML 144), which reached a Final Investment Decision in 2025 after incentives for non‑associated gas were introduced in 2024. Verheijen said the reforms improved Nigeria’s gas terms and removed barriers that previously slowed investment.

Looking ahead, the government expects more projects like Bonga North and Ubeta to sustain the momentum into 2026, while continuing to strengthen local content and streamline regulatory processes to support even greater investment.