Nigeria leads the continent in attracting energy sector funding during Tinubu's tenure, according to a recent study.

Nigeria has taken the top spot as the top destination for energy investments in Africa over the past two years, thanks to sweeping reforms introduced by President Bola Tinubu’s administration, according to a new government report.

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The report, which covers a three-year review of Nigeria’s energy sector reforms from 2023 to 2026, reveals that the country has seen a surge in capital inflows, reversing years of decline caused by policy uncertainty and underinvestment.

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Nigeria’s share of upstream Final Investment Decisions in Africa has risen sharply from four per cent to about 40 per cent between 2024 and 2025, positioning the country ahead of traditional competitors on the continent.

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The report, endorsed by the Presidency and attributed to the office of the Special Adviser to the President on Energy, Olu Verheijen, states that Nigeria has become the number one destination for capital in Africa, underpinned by President Bola Ahmed Tinubu’s energy reforms.

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According to the report, the result has been a renewed pipeline of over $10bn in Final Investment Decisions, particularly in deep offshore and integrated gas, restoring Nigeria’s attractiveness to international oil companies in capital-intensive, long-cycle projects.

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The reforms, anchored on multiple executive orders and policy directives, focused on improving fiscal terms, strengthening regulatory clarity, and accelerating project approvals, with key interventions including directives clarifying the roles of the Nigerian Upstream Petroleum Regulatory Commission and the Nigerian Midstream and Downstream Petroleum Regulatory Authority.

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Other measures included cost-efficiency reforms, VAT modifications, and policies aimed at safeguarding government revenue while enhancing investor returns, which significantly reduced contracting timelines and improved cost structures, thereby restoring investor confidence in the sector.

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The report notes that the President established a clear direction from the outset, aiming to restore credibility, unlock investment, and reposition energy as a driver of growth, jobs, and prosperity, with the reforms reflecting a governing philosophy that is market-oriented, fiscally responsible, and anchored in disciplined execution.

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A major outcome of the policy shift was the completion of about $4bn worth of divestments by international oil companies, which transferred onshore and shallow-water assets to indigenous firms, including transactions involving Shell, ExxonMobil, Agip, and Equinor, now operated by local players such as Renaissance, Seplat, Oando, and Chappal.

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According to the report, a deliberate programme of divestments has enabled the transfer of onshore and shallow-water assets to capable indigenous independents, unlocking record growth in onshore production and creating a more balanced, performance-driven asset ownership structure.

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Nigeria’s oil production figures rose from about 1.2 million barrels per day in 2023 to approximately 1.6 million barrels per day in 2025, an increase of about 400,000 barrels per day and the highest onshore production level recorded in two decades.

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The report further projected a long-term production target of three million barrels per day, driven by renewed investments and improved operating conditions, with key projects driving this recovery including the $5bn Bonga North deepwater development, the $550m Ubeta gas project, and the $100m Iseni gas project.

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A robust pipeline of future investments is already taking shape, with over $50bn in projected upstream projects, including major developments such as Bonga South West, Zaba Zaba, Owowo, Nsiko, Preowei, Bosi, Erha, and Usan, among others.

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In the gas segment, utilisation rose significantly from 2.33 billion standard cubic feet per day in 2023 to 3.25 billion standard cubic feet per day in 2026, reflecting a 40 per cent increase, with gas becoming central to Nigeria’s economic strategy as a transition fuel and a driver of industrialisation.

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Domestic gas supply also recorded steady growth, while export volumes rose by 39 per cent, underscoring the increasing role of gas in Nigeria’s energy mix and industrial strategy, with gas investments, including the $2bn HI Non-Associated Gas Project, positioning Nigeria as a key player in global gas markets and supporting domestic industrialisation.

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In the downstream segment, local refining capacity has improved markedly, with Premium Motor Spirit production rising from near zero levels in 2023 to 48.2 million litres per day in 2026, while Automotive Gas Oil output reached 17.16 million litres per day.

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The report highlights that the increase in local refining has contributed to the elimination of petrol queues across the country over the past three years, with local refining capacity more than doubling and significant increases in PMS and AGO production improving fuel availability and eliminating queues.

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Nigeria’s share of upstream Final Investment Decisions on the continent surged tenfold, rising from four per cent between 2014 and 2023 to about 40 per cent between 2024 and 2025, placing Nigeria ahead of other African oil-producing countries such as Angola, Algeria, and Mozambique in attracting new investments.

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The report further highlighted progress in the power sector, where the government launched a comprehensive debt reduction programme to address liquidity challenges and restore investor confidence, with the programme resolving legacy obligations and re-establishing the financial credibility required for sustained investment.

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Nigeria’s energy sector has historically struggled with underinvestment, regulatory uncertainty, and infrastructure deficits, limiting its contribution to economic growth despite vast oil and gas resources, but since 2023, the Tinubu administration has introduced a series of coordinated reforms aimed at repositioning the sector as a major driver of economic development.

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The latest report suggests that these measures are beginning to yield results, with Nigeria not only attracting fresh capital but also regaining its competitive edge in Africa’s energy investment landscape, and the oil and gas sector, which has long been dominated by international oil companies, is undergoing a significant shift with the divestment of assets and the entry of local firms.

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Sustaining these gains will depend on continued policy consistency, improved security, and the ability of indigenous operators to efficiently manage the acquired assets while attracting further investment, according to the report.