“Additional FIDs are anticipated ”: FG expects more oil sector investment in 2025

• President Bola Tinubu's Special Adviser connected Energy, anticipates that Nigeria volition person much Final Investment Decisions this twelvemonth
• This volition promote accordant economical maturation successful the vigor assemblage and summation capitalist confidence
• Nigeria has struggled to gully successful important caller lipid and state investments; instead, overseas investors person moved astir $80 cardinal to different places

Legit.ng writer Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

Olu Verheijen, President Bola Tinubu's Special Adviser connected Energy, anticipates that Nigeria volition person much Final Investment Decisions this year. This is expected to boost capitalist assurance and beforehand dependable economical maturation successful the energy industry.

FG is luring further overseas nonstop investments, and making definite Nigeria stays competitory among 14 different lipid and state concern destinations. Photo Credit: Contributor
Source: Getty Images

Speaking astatine the Nigeria International Energy Summit 2025, Verheijen emphasized that Nigeria had obtained 3 of Africa's 4 FIDs, totalling much than $5.5 billion, the erstwhile year.

She said the statistic showed Nigeria's lasting arsenic a apical determination for heavy offshore lipid and state investments.

she added that cardinal measures, specified arsenic 3 statesmanlike orders issued successful February 2024 to region obstacles to caller investments, were the driving unit down the nation's improved concern climate.

These actions aided successful luring important concern commitments, including Shell's support of the Bonga North FID and the Ubeta FID obtained done a Total JV.

“The twelvemonth 2024 marked a turning constituent successful our vigor landscape, with Nigeria securing 3 retired of Africa’s 4 Final Investment Decisions, valued astatine implicit $5.5bn.”“Our federation solidified its presumption arsenic a premier destination for heavy offshore lipid and state investments, approved its archetypal deepwater FID successful implicit a decade, facilitated 5 large plus acquisitions, revived 2 home refineries, and commenced petrol accumulation at Africa’s largest refinery.“Looking ahead, further FIDs are anticipated successful 2025, further reinforcing capitalist confidence. The 5 large plus acquisitions completed successful 2024 volition play a captious relation successful accelerating accumulation growth. These transactions person strategically integrated operators with heavy section expertise and operational agility, ensuring much businesslike assets extraction and management,” Verheijen said.

Nigeria not attracting investor

Over the past 10 years, Nigeria has had trouble attracting ample caller lipid and state investments; instead, planetary investors person diverted astir $80 cardinal to different locations.

Verheijen ascribed this to worries astir an uncompetitive fiscal operation and regulatory stability.

However, she said President Tinubu’s medication had taken steps to alteration this communicative by enhancing information successful oil-producing regions and implementing a data-driven information model successful collaboration with operators and information agencies.

This led to a 500,000 barrels per day summation successful lipid accumulation since the medication took office.

The medication of President Tinubu had taken enactment to alteration communicative by strengthening information successful areas that nutrient oil. Photo Credit: FG
Source: Getty Images

In bid to attain its extremity of bringing lipid output backmost to 2.06 cardinal barrels per time successful the adjacent aboriginal and 4 cardinal barrels per time by 2030, the authorities is inactive concentrating connected expanding deepwater operations, luring further overseas nonstop investments, and making definite Nigeria stays competitory among 14 different lipid and state concern destinations.

Additionally, Verheijen cited 5 important plus purchases that were finished successful 2024 arsenic being indispensable to expanding Nigeria's lipid output.

According to her, these deals allowed overseas lipid firms to ore connected deepwater operations, wherever their fiscal and method capabilities are essential, portion integrating operators with section knowledge.

Nigerian Oil And Gas Firm Signs $200 Million

Legit.ng reported that A Nigerian lipid and state firm, NESGAS Limited, has signed a $200 cardinal woody to grow state operations successful Nigeria, with the operation of a 50,000 metric tonnes retention facility.

The retention installation volition beryllium constructed successful Onne, Rivers State, and is expected to importantly boost Nigeria’s liquefied petroleum state retention capableness from the existent capableness of 800,000 metric tonnes, person to the people of 5 cardinal tonnes.

The $200 cardinal contractor financing statement with Cakasa Nigeria Limited was signed successful Abuja, and NESGAS's Managing Director, Tunde Banjo, assured that it would beryllium promptly executed.

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Source: Legit.ng