Nigeria Secures $18.2bn Oil Investments with 28 Field Development Plans

Nigeria recorded a major investment milestone in its oil and gas sector with the approval of 28 new field development plans valued at $18.2bn, carrying an estimated production potential of 1.4 billion barrels of crude oil.

The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, disclosed this in Abuja while delivering his ministerial address at the opening ceremony of the 9th Nigeria International Energy Summit.

According to the minister, Nigeria has re-emerged as Africa’s leading destination for oil and gas investments, accounting for four of the seven major Final Investment Decisions (FIDs) announced across the continent between 2024 and 2025.

Lokpobiri said the achievement was the result of deliberate reforms, improved policy clarity, and stronger governance structures, which have collectively restored investor confidence in Nigeria’s energy sector.

He noted that the renewed inflow of capital signalled Nigeria’s return to the global energy investment landscape after years of stalled projects and declining production, adding that recent fiscal, regulatory, and operational reforms were beginning to deliver measurable outcomes.

“In 2025 alone, 28 new field development plans worth $18.2bn were signed, with the potential to deliver 1.4 billion barrels of oil,” Lokpobiri said. “Between 2024 and 2025, four of the seven major FIDs announced in Africa were in Nigeria. This is the result of consistent reforms, policy clarity, and improved governance. These figures demonstrate that Nigeria is once again attracting serious investment.”

The minister recalled that when the current administration assumed office, the upstream sector was under severe strain, characterised by falling output, investor apathy, and the absence of major new projects for more than a decade.

While acknowledging Nigeria’s vast hydrocarbon endowment across deepwater, shallow-water, and onshore assets, Lokpobiri stressed that natural resources alone were insufficient to attract investment without regulatory certainty and operational efficiency.

He attributed the turnaround to the full implementation of the Petroleum Industry Act, which he said has provided a stable fiscal framework, clearer licensing processes, stronger regulatory oversight, and more predictable contractual terms.

The minister also highlighted the impact of the Upstream Petroleum Operations (Cost Efficiency Incentives) Order 2025, which introduced tax credits and reduced operating costs for producers, helping to ease cost pressures in the upstream segment.

Lokpobiri said the launch of Project One Million Barrels in late 2024 had delivered tangible results, lifting crude oil production to between 1.7 million and 1.83 million barrels per day, representing an increase of about 20 per cent from previous levels. He added that the number of active drilling rigs rose sharply from 14 in 2023 to over 60, signalling renewed activity across the sector.

He further noted that the completion of long-delayed asset divestments by international oil companies, which transferred onshore and shallow-water assets to Nigerian firms, had added approximately 200,000 barrels per day to national output.

However, Lokpobiri acknowledged that challenges remain, particularly within the oil and gas services sector. He said structural constraints persist in the engineering, procurement, and construction segment, partly due to policy misinterpretations that encouraged the emergence of weak local contractors at the expense of experienced operators.

The minister also drew attention to Africa’s estimated $120bn annual hydrocarbon import bill, describing it as a missed opportunity. He called for stronger support for the African Energy Bank, headquartered in Nigeria, to help mobilise capital for the continent’s energy needs.

Meanwhile, the Independent Petroleum Producers Group (IPPG) urged further reforms to streamline regulatory fees, reduce bureaucracy, and improve access to long-term financing.

The IPPG Chairman and Aradel Holdings CEO, Adegbite Falade, said the oil and gas sector had made notable progress, with indigenous producers now accounting for more than half of national output. He attributed this shift to improved pipeline availability, reduced crude losses, and stronger local participation.

Falade stressed that sustained growth would depend on enabling private capital to drive infrastructure development, lowering operating costs, and improving access to affordable long-term funding.

Stakeholders at the summit agreed that Nigeria’s oil and gas sector is on a recovery path, supported by policy clarity, regulatory reforms, and strategic investments, with continued collaboration between government, indigenous companies, and international partners seen as critical to consolidating gains and positioning Nigeria as a regional energy hub.