The Federal Government has announced a significant surge in energy sector investments, with over $8 billion in deepwater and gas projects secured within the past year. This marks an increase from the previously reported $6.7 billion in investments for 2024.
The announcement was made by Olu Verheijen, the Special Adviser to the President on Energy, during her address at the 2025 Africa CEO Forum held in Abidjan. Verheijen attributed the success to the series of government reforms, including improved fiscal terms, faster approval processes, clearer rules, and enhancements to the power sector, making gas-to-power projects more appealing to investors.
“In under a year, Nigeria unlocked over $8 billion in Final Investment Decisions (FIDs) in deepwater and gas projects, driven by decisive presidential action and key reforms,” Verheijen said. She emphasized that the government’s focus on improving fiscal policies, streamlining contracting timelines, clarifying local content regulations, and supporting gas-to-power viability had helped transform Nigeria into an investment hub in the region.
Among the notable projects attracting investment are the Bonga North Deepwater Project and the Ubeta Gas Field. These projects reflect the growing confidence of global investors in Nigeria’s oil and gas sector, as well as the effectiveness of the regulatory changes.
Africa’s Energy Landscape and the Need for Investment Discipline
Verheijen further highlighted that the country’s success story could serve as a model for attracting capital into the broader African energy sector, particularly amid concerns about Africa’s declining share of global upstream investment. She pointed out that, between 2011 and 2015, Africa attracted $340 billion in upstream capital, but this figure is expected to drop below $130 billion between 2026 and 2030, signaling a “structural decimation” of Africa’s investment landscape.
“That’s not a funding winter; that’s a structural decimation,” she warned. “Capital is opportunistic. It flows where risk-adjusted returns are competitive. If Africa wants a meaningful share of the $500 billion spent annually on upstream globally, we must offer clarity, competitiveness, and a predictable regulatory environment.”
Verheijen also issued a strong call to action for African policymakers to abandon sentimental appeals to “African capital”, stressing that capital is not bound by borders but by investment discipline.
“Capital has no passport. It flows where the risk-adjusted returns are competitive,” she asserted, “and we must be realistic in our negotiations with international oil companies (IOCs). These companies are no longer chasing barrels but value low-cost, low-carbon, and de-risked assets.”
Indigenous Growth in the Sector
Despite the challenges, Verheijen praised the rise of indigenous players in Nigeria’s energy sector, particularly in gas production and refining. She pointed to the Renaissance Africa Energy Consortium’s acquisition of Shell’s onshore JV, which represents a “symbolic transition from colonial-era concessions to indigenous control.”
She also celebrated the operational success of the Dangote Refinery, which processes 650,000 barrels per day a remarkable achievement she noted as “not aspirational, it’s operational!” Similarly, Seplat’s recent 390 million standard cubic feet per day gas supply deal with NNPCL was highlighted as a critical step toward “energy security” for Nigeria.
Verheijen emphasized that indigenous equity in Nigeria’s gas sector had risen from 69% to 83%, marking a “seismic shift in ownership and control” of the sector.
The Need for Strategic Partnerships
While celebrating these gains, Verheijen acknowledged that international capital remains vital to sustaining the energy sector’s growth in Africa. IOCs still contribute more than half of the production and capital expenditure in sub-Saharan Africa, and Africa must align with their investment priorities.
“Africa cannot negotiate capital terms on investments that haven’t arrived yet. Investment must come first; returns and benefits will follow,” Verheijen said, adding that strategic partnerships based on mutual interests rather than dependency are critical for long-term success.
A Call to Action
In her closing remarks, Verheijen issued a strong call to action for African countries to position themselves as “investment destinations by design”, focusing on policy clarity, commercial logic, and strategic intent.
“When we get that right, capital won’t hesitate; it will pursue us,” she said. “The future will not be given to Africa. It must be built deliberately, unapologetically, and on our terms.”
