Oil Sector Reforms Attract $17 Billion in Foreign Investment – NNPC
The Nigerian National Petroleum Company Limited (NNPC) has announced that reforms in the oil and gas sector, driven by the Petroleum Industry Act (PIA) 2021 and Executive Orders issued by President Bola Ahmed Tinubu, attracted approximately $17 billion in foreign investment in 2024. This revelation was made by Mr. Udy Ntia, Executive Vice President of Upstream at NNPC, during an investor session at the 2025 CERAWeek by S&P Global in Houston, Texas, USA.
Speaking on the theme, “Spotlight: Attracting Investment for Oil and Gas,” Ntia highlighted how the reforms have liberalized the regulatory framework, offering incentives such as cost recovery, royalty payments, and profit-sharing mechanisms. These measures have significantly enhanced the investment climate in Nigeria’s oil and gas sector, making it more attractive to global investors.
In a statement issued by NNPC’s Chief Communications Officer, Mr. Olufemi Soneye, in Abuja, Ntia called on international investors to focus on Nigeria’s oil and gas industry, describing the country as an “investors’ haven” due to its robust regulatory reforms and investment-friendly policies under the Tinubu administration.
Nigeria’s Strategic Position in the Global Energy Market
Ntia emphasized that Nigeria is well-positioned to meet rising global energy demand, driven by geopolitical tensions and the energy policies of the US administration. He noted that despite global energy security concerns, Nigeria sees significant opportunities to expand its oil and gas industry.
“For us in Nigeria, despite global energy security concerns, including those in Europe, we see significant opportunities. We have strategically positioned our assets to leverage the current strong price environment, which has remained favorable over the past two to three years. As a result, we anticipate substantial investment inflows into the sector,” Ntia stated.
Investment Opportunities in Refining and Gas Sectors
Ntia identified refining and gas as key areas with immense investment potential. He stressed Nigeria’s commitment to expanding its refining capacity to reduce dependency on imported petroleum products. Additionally, he highlighted the country’s vast gas reserves, estimated at 207 trillion cubic feet (TCF), as a critical driver of industrialization and economic growth.
“Gas will play a critical role in Nigeria’s energy future. We are expanding our gas infrastructure in collaboration with partners such as Shell, ENI, and Total. Our LNG Train 7 project is advancing, and we are investing in domestic pipeline networks to meet local energy demands,” Ntia explained.
Appeal to Global Investors
Ntia encouraged foreign investors, particularly from China and India, to explore opportunities in Nigeria’s oil and gas sector. He cited the country’s large crude oil reserves, which exceed 37 billion barrels, and its flexible investment models, including joint ventures and production-sharing contracts, as key attractions for investors.
“Nigeria offers a stable democracy, improved security, and a business-friendly regulatory framework. We welcome investors from China, India, and beyond to partner with us in unlocking the vast potential of Nigeria’s oil and gas sector,” Ntia stated.
Impact of the Petroleum Industry Act (PIA) 2021
The enactment of the Petroleum Industry Act (PIA) 2021 has been a game-changer for Nigeria’s oil and gas sector. The legislation provides a comprehensive legal and regulatory framework that promotes transparency, accountability, and efficiency in the industry. It also establishes the Nigerian Upstream Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to oversee the sector’s operations.
The PIA has created a more predictable and stable investment environment, attracting both local and international investors. The $17 billion in foreign investment recorded in 2024 is a testament to the success of these reforms and the growing confidence of global investors in Nigeria’s oil and gas sector.
Conclusion
The NNPC’s announcement at CERAWeek 2025 underscores Nigeria’s commitment to transforming its oil and gas industry into a global investment hub. By leveraging its vast natural resources, implementing investor-friendly policies, and expanding infrastructure, Nigeria is poised to play a pivotal role in meeting global energy demand.
As the country continues to attract significant foreign investment, stakeholders are optimistic about the sector’s potential to drive economic growth, create jobs, and enhance energy security. The NNPC’s appeal to global investors reflects Nigeria’s readiness to collaborate with international partners in unlocking the full potential of its oil and gas resources.
With ongoing reforms and strategic investments, Nigeria is well on its way to becoming a leading player in the global energy market, offering lucrative opportunities for investors and contributing to the nation’s sustainable development.
