Investment drive in Nigeria’s oil sector has risen significantly, a development attributed to the reforms and policy stability by current administration.
According to the 2025 West Africa Oil and Gas Outlook by Deloitte, West Africa oil and gas market is demonstrating strong growth potential, driven by global energy demand and rich reserves in the region.
The report, added that the West African oil and gas market represents a Compound Annual Growth Rate (CAGR) of 6.5 per cent from 2025 to 2033. This is worth approximately $80 million. Nigeria and Ghana account for approximately 60 per cent and 20 per cent of that value, respectively.
The report explained that, the oil and gas sector in sub-Saharan Africa is facing a decisive inflection point. “From Nigeria’s hydrocarbon-rich delta to Angola’s offshore blocks, to the enormous gas reserves in the East African rift valley, the continent is recalibrating its approach to energy equity, security and sustainability.”
In terms of crude oil production in Africa, Nigeria remains the top producer, producing around 1.5 million barrels per day (bpd) at the end of 2024, with Angola closely behind at 1.1 million barrels per day.. Nigeria recorded 1.5 million barrels per day at the end of 2024, while Angola followed with 1.4 million barrels per day.
“These volumes underscore the strategic relevance of the region to Africa’s energy outlook, but they also mask deeper complexities facing operators and policymakers”, the report stressed. The report was on the topic ‘Shaping Opportunity from Complexity in West Africa’s Oil and Gas Market.’
Also, on Tuesday, Nigeria’s gas sector received a major boost as global energy giant Shell announced a $2billion investment in the development of the HI Field, a shallow offshore non-associated gas project located in Oil Mining Lease 144.
The development marks Nigeria’s second major gas investment in 18 months and underscores renewed global confidence in the country’s oil and gas industry.
According to the government, the new project brings total upstream investment commitments through Final Investment Decisions to over $8billion since Tinubu assumed office in 2023.
The Nigerian Upstream Regulatory Commission (NUPRC), has also projected an increase of approximately 600,000 barrels per day in Nigeria’s crude oil production, driven by a surge in new investments in the upstream sector.
It stated that the additional output would come from the 28 Field Development Plans approved so far in 2025, which are expected to deliver about 600,000 barrels of crude oil and over 2 billion standard cubic feet of gas per day.
If realised, this would raise Nigeria’s daily crude production to about 1.89 million barrels, up from 1.39 million barrels per day recorded in September.
The commission chief executive of the NUPRC, Gbenga Komolafe, gave the projections at the 2025 World Energies Summit convened by Frontier Energy Network in London.
Komolafe, stated, “In 2025 alone, 28 new Field Development Plans have already been approved, unlocking an additional 1.4 billion barrels of oil and 5.4 trillion cubic feet of gas.
“These projects are expected to add nearly 600,000 barrels of oil per day and more than 2 billion standard cubic feet of gas per day, supported by $18.2 billion in committed CAPEX. Together, these outcomes demonstrate that Nigeria’s upstream sector is not only on a growth trajectory but is also attracting the scale of investment needed to sustain its role as a premier global energy hub,” he said.
Highlighting the dividends of bold reforms, the CCE disclosed that the commission has conducted licensing initiatives such as the 2022 Petroleum Prospecting Licences, the Mini-Bid Round for deep offshore blocks, and the landmark 2024 Licensing Round, which was adjudged transparent by operators and stakeholders including the Nigeria Extractive Industries Transparency Initiative.
According to him, the PIA ushered in fiscal reforms and investor-centric policies anchored in transparency, ethical governance, clarity, predictability, sustainability, competitiveness, and investor confidence.
The NUPRC, established by the PIA, has issued 24 regulations benchmarked against global standards to restore confidence and stability, he noted.
Komolafe reiterated that the three Executive Orders issued by President Tinubu in 2024 have further incentivised Nigeria’s oil and gas sector.
As part of moves toward a just transition, Komolafe said Nigeria is embedding climate responsibility at the heart of its upstream reforms through a robust Decarbonisation Framework that integrates MRV systems, carbon capture and storage, and access to carbon markets.
