Strategic Reforms Drive $5.3bn Investment into Nigeria’s Energy Sector

Nigeria has officially reclaimed its status as the leading destination for energy capital in Sub-Saharan Africa, capturing 38 percent of all major project sanctions on the continent over the last 24 months. Special Adviser to the President on Energy, Olu Verheijen, revealed on Thursday that the country secured $5.3 billion in upstream capital investment in 2025 alone, marking a significant economic turnaround.

The Special Adviser noted that this surge in investment occurred despite an 18 percent decline in overall upstream spending across the Sub-Saharan region. This indicates that Nigeria’s energy sector is successfully decoupling from broader regional trends, largely due to targeted reforms designed to restore investor confidence and eliminate bureaucratic bottlenecks.

A critical component of this recovery has been the introduction of Non-Associated Gas (NAG) incentives in 2024. These fiscal measures made several major projects commercially viable, providing the necessary feedstock for the Nigeria LNG project and encouraging indigenous enterprises to participate more actively in the value chain.

​The report highlights a dramatic shift compared to the period between 2015 and 2023, during which Nigeria captured only 4 percent of African Final Investment Decisions. Under the current administration’s "Data-Driven" benchmarking, the country has moved into the top quartile of global jurisdictions for investment competitiveness, with five out of eight major African projects now situated in Nigeria.

Verheijen emphasized that as Nigeria enters this new cycle of growth, the focus must remain on strengthening local content and improving regulatory efficiency. With high-impact developments like Bonga North and Ubeta advancing, the Presidency expects this momentum to carry into 2026, provided regulators act as enablers of speed and clarity.