Nigeria’s energy sector attracted a total of $6.7 billion in 2024, driving economic growth and energy sustainability in the country.
The investments cut across oil and gas, clean energy initiatives, and infrastructural projects, according to key highlights released by the Presidential Media Centre.
Breakdown of Investments
The lion’s share of the total investment—$5.5 billion—was channelled into the oil and gas sector, showing sustained confidence in Nigeria’s hydrocarbon resources despite global energy transitions.
Again, $400 million was allocated to the Presidential Metering Initiative, a programme designed to enhance electricity metering nationwide, tackling incessant billing inefficiencies and boosting consumer confidence.
The Clean Mobility and Cooking Program received $700 million in funding, showing the extent of focus on clean energy solutions, particularly in areas of transportation and cooking, where many Nigerians still rely on non-renewable energy sources.
Asset Acquisitions Drive Growth
A closer look at asset acquisitions revealed a dynamic year for companies in Nigeria’s energy sector:
Shell Petroleum Development Company divested assets worth $1.3 billion to the Renaissance Consortium, opening opportunities for indigenous players.
Seplat Energy made a big move, acquiring ExxonMobil’s upstream assets for $1.3 billion, strengthening its place in the energy space.
Chappal Energies recorded two major deals, acquiring assets worth $1.2 billion from TotalEnergies and $860 million from Equinor.
These transactions align with trends of international oil companies (IOCs) restructuring their portfolios to meet energy transition goals, while indigenous companies strengthen their footprint in the local market.
Advancing Solar Energy with the G5 Sahel Project
In enhancing renewable energy, Nigeria is a top participant in the G5 Sahel Desert to Power Project, the largest solar energy initiative in Africa.
The project, with a master plan cost of $10 billion, aims to generate 10 GW of solar power across 11 Sahel countries.
It is funded by the African Development Bank (AfDB) and the Green Climate Fund, backing the country’s commitment to renewable energy adoption and sustainability.
This initiative aims to largely boost electricity access in the Sahel region, combating energy poverty while reducing reliance on fossil fuels.
Nigeria had a strong 2024 for investments, innovation, and infrastructure development with an inflow of $6.7 billion into its energy sector. Balancing its rich oil and gas resources with an expanding adoption of renewable energy is the goal for sustainable energy growth.
This growth in the energy sector is expected to bolster Nigeria’s economy, create jobs, and enhance energy accessibility for millions of citizens.
