Nigeria has solidified its leadership in Sub-Saharan Africa’s upstream oil and gas sector, attracting $5.3 billion in capital investment in 2025 despite an 18% decline in regional spending.The country accounted for one of only two Final Investment Decisions (FIDs) recorded across the continent last year. The notable project, the Shell–Sunlink HI Field (OML 144), is a shallow-water non-associated gas development that reached FID following the introduction of Nigeria’s Non-Associated Gas (NAG) incentives in 2024. These incentives restored the project’s commercial viability and unlocked essential gas feedstock for the Nigeria Liquefied Natural Gas (NLNG) facility.
Experts note that Nigeria’s recent FID performance marks a dramatic turnaround. Between 2015 and 2023, the country captured only 4% ($5 billion) of sanctioned FIDs across Africa, representing six of 44 projects. Over the past two years, however, Nigeria has secured 38% ($8 billion) of all FIDs, winning five of eight projects awarded on the continent. Industry analysts attribute this surge to decisive reforms implemented over the last 24 months.
Nigeria now offers some of the most competitive deep-water fiscal terms globally, alongside the most attractive gas investment incentives in Africa. These measures, combined with a stable and investor-focused policy framework, are expected to drive additional FIDs in 2026, further strengthening Nigeria’s position as the region’s upstream investment hub.
The country’s success is being hailed as a model for attracting private capital to strategic energy projects, highlighting the critical role of targeted incentives and regulatory certainty in fostering sector growth.
Nigeria leads Sub-Saharan Africa in upstream oil and gas investment, attracting $5.3bn in 2025. Strategic reforms and competitive gas incentives position the country as the continent’s top investment destination.
Discover more from Ameh News
Subscribe to get the latest posts sent to your email.
