(WO) – Nigeria has sharply increased its share of Africa’s upstream final investment decisions (FIDs) following a series of energy sector reforms aimed at restoring investor confidence and accelerating project approvals.
According to a new government-backed review of Nigeria’s energy reforms between 2023 and 2026, the country increased its share of African upstream FIDs from just 4% during the previous decade to roughly 40% over the past two years.
The report said reforms implemented under President Bola Tinubu helped reverse years of declining upstream investment tied to regulatory uncertainty, underinvestment and security challenges.
Key reforms included tax incentives targeting deepwater developments, clarification of regulatory responsibilities between Nigerian energy agencies and efforts to reduce contracting timelines from 36 months to six months.
The review also highlighted several major upstream transactions and project sanctions, including Shell’s $5-billion Bonga North development and TotalEnergies’ joint FID with NNPCL on the Ubeta gas project.
The report said Nigeria now has an estimated $50-billion upstream project pipeline extending beyond 2026, including developments such as Bonga South West, Owowo, Usan and Erha.
Production has also recovered following the reforms. Nigeria’s output reportedly increased by about 400,000 bopd between 2023 and 2025, reaching approximately 1.6 MMbpd.
“When a government rebuilds fiscal competitiveness and regulatory predictability at the same time, capital responds,” said NJ Ayuk. “Nigeria has done both, and the FID numbers are concrete proof.”
Source: APO Group / African Energy Chamber
About The Author
