By Ayomide Otitoju
As the G20 Africa Energy Investment Forum approaches, Nigeria is preparing to present its energy reform agenda and investment opportunities to global stakeholders. The forum, scheduled for November 21 in Johannesburg, will feature Olu Verheijen, Special Adviser to President Bola Tinubu on Energy, who is expected to highlight how Nigeria’s recent policy reforms are attracting foreign investment and positioning the country as a model for Africa’s hydrocarbon-driven energy transition.
Africa’s leading oil and gas producer, Nigeria, has embarked on sweeping reforms aimed at revitalizing exploration, reversing production decline, and maximizing value from its hydrocarbon resources. Among the key initiatives is the Upstream Petroleum Operations (Cost Efficiency Incentives) Order 2024, which grants performance-based tax credits to operators meeting cost-reduction benchmarks. The measure builds on the Petroleum Industry Act (PIA) of 2021, which transformed the governance of the sector, commercialized the Nigerian National Petroleum Company (NNPC), and established a transparent regulatory framework to attract investment.
These reforms have delivered tangible results. Since the PIA’s enactment, Nigeria has attracted over $17 billion in foreign direct investment (FDI) into its oil and gas industry. Major recent projects include ExxonMobil’s $1.5 billion investment to revitalize the Usan deepwater oilfield, Shell’s $5 billion Final Investment Decision on the Bonga North Deepwater Development, and TotalEnergies’ $550 million gas processing project. Additionally, the country recorded $6.7 billion in mergers and acquisitions in 2024, led by Seplat, Chappal Energies, and Oando. Collectively, these moves align with Nigeria’s ambition to boost production to over two million barrels per day.
Beyond oil, Nigeria is pursuing a diversified energy transition strategy under its National Energy Transition Plan, which targets a balance between hydrocarbons and renewables. The government aims to raise gas production to 12 billion cubic feet per day by 2030 and attract $60 billion in investment over the next seven years to expand the gas value chain. With over 200 trillion cubic feet of proven reserves, gas remains central to the nation’s industrialization and power agenda.
In renewables, the government’s “30-30-30” plan seeks to generate 30 GW of grid-connected power capacity by 2030, with 30% from renewable sources, as part of its net-zero 2060 target. Notable projects include Oando Clean Energy’s 1.2 GW solar farm in Jigawa, the World Bank-backed $750 million Distributed Access through Renewable Energy Scale-up (DARES) project—expected to power 17.5 million Nigerians—and the Rural Electrification Agency’s 948 MW generation agreements with private developers.
“Nigeria’s energy reforms are setting a powerful precedent for what African-led policy can achieve,” said NJ Ayuk, Executive Chairman of the African Energy Chamber. “By fostering transparency, incentivizing investment, and prioritizing both hydrocarbons and renewables, Nigeria is demonstrating that energy security and transition can work hand in hand.”
The G20 Africa Energy Investment Forum will serve as a platform for dialogue between global investors and African stakeholders. With a focus on Africa-centric energy transition pathways, the forum will explore the role of natural gas, the development of integrated energy systems, and how oil-producing nations like Nigeria can lead the continent’s industrial and energy transformation.
