Nigeria’s oil reforms attracted $17bn in investments – NNPCL
The Nigerian National Petroleum Company Limited has announced that reforms in the oil and gas sector, driven by the Petroleum Industry Act 2021 and President Bola Tinubu's executive orders, will attract approximately $17 billion in foreign investment by 2024.Udy Ntia, Executive Vice President of Upstream, disclosed this during an investor session at S&P Global's 2025 CERAWeek in Houston, Texas, according to a statement issued by NNPCL spokesperson Olufemi Soneye on Wednesday.
Ntia stated that the reforms have liberalized the regulatory framework by introducing incentives for cost recovery, royalty payments, and profit-sharing mechanisms to encourage investment.
In part, the statement read, "Ntia also disclosed that the Petroleum Industry Act 2021 and the series of Executive Orders signed by President Tinubu in 2023 have significantly liberalized the regulatory framework, offering incentives for cost recovery, royalty payments, and profit-sharing mechanisms, adding that Nigeria recorded $16bn to $17bn in foreign investment inflows in 2024 following the implementation of these regulatory reforms."
Speaking on the topic "Spotlight: Attracting Investment for Oil and Gas," Ntia emphasized that Nigeria is a safe and appealing investment destination.
He noted that the country is expanding its oil and gas industry in response to rising global energy demand, which is being driven by geopolitical tensions and US energy policies.
"We in Nigeria see significant opportunities, despite global energy security concerns, including those in Europe." We have strategically positioned our assets to capitalize on the current strong price environment, which has remained favorable over the last two to three years. As a result, we expect significant investment inflows into the sector," he said.
Ntia urged global investors to focus on Nigeria's oil and gas sector, describing it as an investor haven thanks to strong regulatory reforms and President Bola Ahmed Tinubu's investment-friendly policies.
Ntia highlighted key investment opportunities in Nigeria's refining and gas sub-sectors, emphasizing the country's commitment to increasing refining capacity to reduce reliance on imports. He also emphasized Nigeria's desire to use its 207 trillion cubic feet of gas reserves to boost industrialization and economic growth.
"Gas will be critical to Nigeria's energy future. We are expanding our gas infrastructure in partnership with Shell, ENI, and Total. Our LNG Train 7 project is moving forward, and we're investing in domestic pipeline networks to meet local energy needs," he said.
He urged foreign investors, particularly from China and India, to look into opportunities in Nigeria's oil and gas sector. He emphasized the country's 37 billion barrels of crude oil reserves and its flexible investment models, such as joint ventures and production-sharing agreements.
"Nigeria provides a stable democracy, improved security, and a business-friendly regulatory environment. "We welcome investors from China, India, and other countries to join us in realizing Nigeria's vast oil and gas potential," Ntia stated.
Global industry leaders attended the session, including Pinxian Zhang, Deputy Director General of Planning at China National Petroleum Corporation; Rajarshi Gupta, Managing Director of ONGC Videsh Ltd; and Masoud Mahmoud, Chairman of Libya's National Oil Corporation.
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