Nigeria Courts Global Oil Investors with Reform Track Record and Expanding Energy Pipeline
Nigeria is intensifying its outreach to international oil and gas investors, leveraging two years of significant economic reforms and a burgeoning project pipeline to convert its substantial energy resources into sustained capital inflows. This strategic push was evident at the Nigerian-British Chamber of Commerce’s annual Energy Day in Lagos, where government officials, diplomats, and energy executives presented a compelling case for Nigeria as a delivery-focused market, moving beyond mere potential.
The optimism is anchored by the implementation of the Petroleum Industry Act (PIA), a long-awaited legislative overhaul of the oil and gas sector’s legal and fiscal framework. This is complemented by a broader national agenda to enhance domestic refining capacity and revitalise investor confidence in gas and power projects. Olu Verheijen, Special Adviser to President Bola Tinubu on Energy, articulated that Nigeria’s historical challenge has not been a scarcity of resources but an inability to effectively convert them into tangible output.
Verheijen highlighted Nigeria’s abundant oil, gas, solar, hydro, arable land, and skilled workforce, yet noted the persistent struggle to translate reserves into production, production into revenue, and gas into reliable power essential for industrial growth. “Nigeria has never lacked potential,” she stated, “What we have lacked is conversion—turning resources into results, reserves into production, production into revenue, gas into power and power into productivity.”
The administration’s fiscal reforms, particularly the removal of fuel subsidies and the unification of exchange rates, have demonstrably strengthened government balance sheets, positioning Nigeria as a more attractive destination for capital. Federation revenue, Verheijen reported, surged to approximately N21 trillion in 2024 from N12 trillion the previous year, a growth partly attributable to the fiscal savings from subsidy removal. Crucially, for the first time in a generation, the majority of petrol consumed in Nigeria is now refined domestically. Local petrol output has risen from near zero in 2023 to approximately 48 million litres per day, enabling the nation to meet most of its fuel requirements and thereby reducing demand for foreign exchange previously allocated to product imports, easing pressure on the naira.
Addressing the long-standing impediment of the power sector, Verheijen announced that the government has approved a debt-clearance programme of up to N4 trillion to settle verified arrears owed to power generation companies and gas suppliers. This initiative aims to restore liquidity and rebuild trust within a value chain that has suffered from chronic underfunding. These combined measures, she argued, signal Nigeria’s transition from offering mere potential to demonstrating a credible reform path, an expanding portfolio of bankable projects, and tangible evidence of policy execution.
British officials at the forum expressed continued interest in the Nigerian energy market. Grace Bell, First Secretary for Economic Partnerships at the British Deputy High Commission in Lagos, speaking on behalf of Deputy High Commissioner Jonny Baxter, identified opportunities across project development, engineering, financing, grid management, and renewable energy integration. She emphasised that the UK-Nigeria relationship thrives on practical business collaboration underpinned by a stable policy environment.
Abimbola Olashore, President of the Nigerian-British Chamber of Commerce, described Nigeria as one of Africa’s most compelling energy markets, with gas infrastructure, financing, and the broader energy transition remaining central to UK-Nigeria economic ties. The chamber, he added, remains committed to facilitating connections between investors and opportunities across the oil, gas, and renewables value chains.
Domestic private sector executives echoed this sentiment, while also flagging persistent operational challenges. Adegbite Falade, Managing Director of Aradel Holdings, stated that Nigerian energy companies are poised for growth but urged accelerated execution, expanded investment across the value chain, and a prioritisation of gas development as a feedstock for industrial expansion. He reiterated that reliable power is a fundamental prerequisite for enhanced productivity and broader business growth.
Taaj Shobayo, Chair of the Chamber’s Energy Group, posited that Nigeria’s ultimate success will be measured by its ability to convert its resource base into dependable energy supply and improved living standards, advocating for deeper public-private collaboration to advance projects.
Despite the prevailing optimism, participants acknowledged that Nigeria’s energy ambitions are still evolving. Sustained investment, they concluded, will be contingent on the nation’s capacity to maintain policy consistency, develop critical infrastructure, and continue executing its reform agenda, rather than viewing recent achievements as a final destination.
