International oil companies (IOCs) operating in Nigeria, including Shell, TotalEnergies, ExxonMobil, Eni and Chevron, are set to invest over $55 billion in the country’s energy sector through 2030. This renewed interest aims to advance Nigeria’s oil and gas activities.
The massive investment commitment follows a series of engagements between key government officials and oil majors, according to Olu Verheijen, special adviser to President Bola Tinubu on energy. Around $13 billion of the total is expected within the next 12 months.
In addition to the oil majors, notable independent energy, oil and gas companies like Seplat, Heirs Holdings, Waltersmith and First E&P will also participate in the landmark deal.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), alongside other agencies, met with representatives of 15 companies operating in Nigeria’s oil and gas sector. They discussed strategies to address Nigeria’s revenue shortfall while stabilizing the economy, part of a presidential initiative.
Verheijen stated the talks uncovered major investment opportunities, with projections reaching $55.2 billion by 2030. Within a year, $13.5 billion should come from the companies.
“We face a revenue crisis impacting all Nigerians. To address this urgently, President Tinubu actively seeks revenue and forex growth to stabilize our economy and currency. Despite falling short of potential, the oil and gas sector remains critical to this,” Verheijen explained.
The consultations revealed challenges and barriers affecting investment strategies and project rollouts. Collectively, strategies were pinpointed to ensure 2.1 million daily barrels by December 2024, surpassing Tinubu’s 2.6 million barrel goal by 2027.
The measures could also double gas production by 2027, exceeding Tinubu’s 20% growth target for that sector.