KEY POINTS
- In 2024 the energy sector gained $6.7 billion towards increasing oil gas production.
- The Presidential initiatives focus on expanding both electricity availability and decreasing pricing.
- FG aims for $35 billion in energy investments by 2029.
Nigeria’s energy sector received $6.7 billion of investments in 2024 where the majority went toward oil and gas development according to Olu Verheijen who serves as President’s Special Energy Adviser.
The ‘Presidency Energy Sector Wrap-Up 2024’ report published on Wednesday revealed the numbers.
Renaissance Consortium acquired Shell Petroleum Development Company from the original owner for $1.3 billion while Seplat Energy purchased Mobil Producing Nigeria Unlimited from ExxonMobil for $1.3 billion.
Chappal Energies bought Equinor Nigeria Energy Company through a $1.2 billion deal and TotalEnergies obtained 10 percent of the SPDC JV licenses for $860 million.
A substantial move toward local control of businesses emerged through these acquisitions which delivered both production growth and secured stability for the energy sector according to analysis by the report.
Power sector reforms and investments to drive economic growth
A $700 million allocation funded the Clean Mobility and Cooking program while the Presidential Metering Initiative received $400 million funding from investments in oil and gas sector. Programs were established to resolve concerns about the affordability and reliability of energy systems.
Through the Bonga North Deep Offshore Project SNEPCO invested $5 billion to construct Nigeria’s premiere deep offshore greenfield development which will deliver maximum daily output of 110,000 barrels per day.
The Ubeta non-associated gas project received a $550 million investment from TotalEnergies together with the Nigerian National Petroleum Company Limited.
The Federal Government aims to attract $30 billion in investments for the oil sector and $5 billion in gas sector investments during the period by 2029.
“Nigeria’s energy efforts focus on resource optimization to support economic expansion while achieving sustainable power transition” Verheijen emphasized.
