Nigeria Attracts $18.2 Billion in Oil and Gas Investment

Nigeria’s oil and gas industry has received a huge boost with the announcement that $18.2 billion in upstream investment commitments have been secured through reforms introduced by the Nigerian Upstream Petroleum Regulatory Commission. The commission’s Chief Executive, Gbenga Komolafe, made the disclosure at the Africa Oil Week in Accra, where he highlighted how government policies are reshaping the industry and restoring investor confidence.

According to him, the approval of 28 new Field Development Plans is expected to unlock 1.4 billion barrels of oil and 5.4 trillion cubic feet of gas. This will add nearly 600,000 barrels of oil per day and more than two billion standard cubic feet of gas per day to the country’s output. These developments are designed to help Nigeria achieve its target of producing over three million barrels of crude oil per day.

The progress is tied to the Petroleum Industry Act of 2021, which Komolafe described as the foundation of a new era in the energy sector. The act ushered in governance reforms, fiscal changes, and institutional realignment. Under the new structure, the NUPRC was created as a forward-looking regulator tasked with making Nigeria a more attractive destination for investors.

Over the last four years, the commission has rolled out 24 major regulations, with 19 of them already gazetted into law. It has also introduced a Regulatory Action Plan aimed at removing barriers, clearing bottlenecks, and ensuring that licensing rounds are timely, competitive, and transparent. These steps, according to Komolafe, are helping Nigeria position itself as one of the most dynamic upstream investment destinations in the world.

The results are already visible. Rig counts, which had fallen as low as eight in 2021, have climbed to 43 as of September 2025. Beyond that, some landmark deals have been concluded. The $5 billion Final Investment Decision for the Bonga North deep offshore development and the $500 million Ubeta Gas Project stand out as clear signs of renewed commitment from investors. More projects are expected to follow, including HI NAG Development, Ima Gas, Owowo Deep Offshore, and Preowei Fields.

President Bola Tinubu’s administration has also approved five major acquisition deals worth over $5 billion. These have opened new opportunities for indigenous oil and gas companies to expand their operations and play a more significant role in the sector.

Komolafe also emphasized the transparency of recent licensing rounds. In 2022, 57 Petroleum Prospecting Licence awards were concluded, followed by a mini-bid round the same year and a larger licensing round in 2024. Out of 31 blocks offered in 2024, 27 were successfully awarded to investors. This was made possible by reforms such as optimizing signature bonus requirements and removing entry barriers, which created a level playing field and widened access for more participants.

He described these moves as laying the foundation for fresh investment and long-term sectoral growth. According to him, Nigeria is at the beginning of a new chapter built on clarity, competition, and confidence. With the Petroleum Industry Act, presidential directives, and transformative regulations, the country is shaping an upstream environment that rewards innovation, ambition, and responsible investment.

Other recent milestones reinforce this outlook. The commission announced the successful conversion of a Petroleum Prospecting Licence from the 2020 marginal field bid round into a Petroleum Mining Lease, marking the first transition of its kind. This was followed by the signing of a new Production Sharing Contract between the Nigerian National Petroleum Company Limited, TotalEnergies, and South Atlantic Petroleum for deepwater blocks, under the supervision of the NUPRC.

Taken together, these developments show a sector that is not only stabilizing but also growing into one of the most attractive investment frontiers in Africa. The secured $18.2 billion in commitments signals strong investor belief in Nigeria’s upstream industry, while the steady reforms show that government is serious about building a sustainable and competitive oil and gas environment.

For Nigeria, the implications go beyond oil production. Increased investments will mean more jobs, better revenue, and stronger energy security. It also puts the country in a better position to compete globally while meeting local demands. With the right execution, the reforms could transform oil and gas into a more reliable driver of economic growth and a foundation for broader national development.