- In 2024, Nigeria undertook three out of four Final Investment Decisions (FIDs) in Africa—valued at over $5.5 billion
- Regrettably, 600 million Africans—accounting for 83% of the global electricity deficit—still lack access to electricity’
In a landmark address at Day one of the ongoing Nigeria International Energy summit, Olu Verheijen, Special Adviser to the President on Energy, reflected on Nigeria’s major energy sector achievements in 2024 and their broader implications for Africa’s energy transformation; stating that with nearly 600 million Africans still lacking electricity, Nigeria’s energy advancements are not just a national victory but a crucial step toward regional economic transformation.
With Nigeria securing three out of four Final Investment Decisions (FIDs) in Africa—valued at over $5.5 billion—Verheijen highlighted the nation’s evolving role as a premier investment hub in deep offshore oil and gas.
“When the history of Africa’s Industrial Revolution is written, 2024 will be recognized as the year that ignited transformation.”
Bridging Africa’s Energy Poverty Gap
In her address, Verheijen emphasized the crucial role energy plays, stating it remains the foundation of industrialization, economic expansion, and social progress. Yet, nearly ‘600 million Africans—accounting for 83% of the global electricity deficit—still lack access to electricity’. This severe energy poverty continues to hinder industrial growth, job creation, and economic prosperity.
“As Africa’s largest economy and an energy leader, Nigeria recognizes its responsibility to drive change—not just for its own development but for the entire continent. President Bola Ahmed Tinubu’s administration has prioritized energy security as a cornerstone of national and regional development, focusing on increasing domestic utilization and strategic exports while systematically addressing energy poverty’, says Verheijen
Strategic Reforms and Investments: A Turning Point for Nigeria’s Energy Sector
According to Olu Verheijen, 2024 marked a turning point, with Nigeria achieving several key milestones:
- Approval of its first deepwater FID in over a decade
- Completion of five major asset acquisitions
- Rehabilitation of two domestic refineries
- Commencement of production from Africa’s largest refinery
“These developments were not coincidental but the result of deliberate strategy and decisive leadership“
A key aspect of Nigeria’s success has been its ability to enhance investor confidence, a factor that had previously deterred global oil and gas partners from committing significant capital to the country.
“Over the past decade, global investors allocated $80 billion elsewhere. The reason was clear—investors require confidence in a stable regulatory and fiscal framework.”
To address these investment barriers, President Tinubu issued three landmark directives—*40, 41, and 42 in February 2024—to eliminate regulatory roadblocks and enhance Nigeria’s global competitiveness. These reforms *positioned Nigeria in the top quartile among 14 competing oil and gas destinations.
The results have been immediate and tangible. By May 2024, *Total and MPCJB secured the UBeta Gas FID, followed by *Shell and its partners approving the long-awaited Bonga North FID before year-end. The momentum is expected to continue into 2025, with additional FIDs in the pipeline.
Increasing Oil Production and Strengthening Security
A central pillar of Nigeria’s energy strategy is boosting oil production. President Tinubu has set an ambitious target to restore production to 2 million barrels per day (bpd) in 2024 and achieve 4 million bpd by 2030.
A major factor in this effort has been security enhancements in oil-producing regions. Nigeria implemented *data-driven security interventions, working closely with operators to identify and address vulnerabilities. Coordinating with the **National Security Advisor and the Ministry of Defense, these efforts led to a *500,000 bpd increase in oil production since the administration took office.
Power Sector Reforms: Towards Electrification and Sustainability
Beyond oil and gas, Nigeria is undergoing transformative reforms in the power sector, aiming to enhance grid reliability and expand electrification. In 2024, the government introduced bold financial measures to:
- Strengthen governance and efficiency in the power sector
- Attract private sector investment
- Improve service delivery
A key initiative is the *Presidential Metering Initiative, which consolidates all metering programs into a single framework. This program aims to *deploy 7 million smart meters, eliminating the inefficiencies and frustrations of estimated billing while *enhancing revenue collection for electricity distribution companies.
“If they don’t collect, they don’t get paid, and if they don’t get paid, gas suppliers won’t supply power. We must fix the financial chain to ensure reliability.”
To secure long-term financial stability, the government is addressing outstanding debts owed to gas suppliers and generation companies. A gradual transition to cost-reflective tariffs is also being implemented to balance affordability with sustainability, ensuring that vulnerable populations are protected through targeted subsidies.
Nigeria’s Role in Shaping Africa’s Energy Future
Nigeria’s energy transformation has far-reaching implications beyond its borders. The country’s success in securing investments, expanding domestic refining capacity, and enhancing electrification strengthens regional energy security and intra-African trade, supporting industrialization efforts across the continent.
“A more energy-secure Africa translates into a more economically resilient Africa.”
By leveraging its vast energy resources for industrial development and strategic exports, Nigeria is laying the foundation for sustainable job creation, economic diversification, and long-term prosperity. The reforms implemented in 2024 are shaping Africa’s energy future and defining Nigeria’s role in the global economy.
A Year of Transformation
Verheijen concluded her address by emphasizing that as Nigeria continues to lead Africa’s energy evolution, 2024 will stand as a defining year of transformation. With strategic investments, regulatory reforms, and targeted policies, the country is positioning itself as a global energy powerhouse while working to close the continent’s energy poverty gap.
She stated that while the road ahead will require sustained commitment, with decisive leadership and strategic execution, Nigeria is definitely on course to reshape Africa’s energy landscape for generations to come.
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