Nigeria, Africa’s largest oil producer, invested $6.7 billion in its energy sector in 2024, with the bulk of the funds directed toward oil and gas, according to a report by Special Adviser to the President on Energy, Olu Verheijen.
The report revealed that $5.5 billion was spent on the oil and gas industry, with the remaining funds allocated to infrastructure improvements and renewable energy projects as the country works to expand its energy footprint and achieve a 90% electrification rate by 2030.
Nigeria, which has the largest proven oil reserves in Africa alongside Libya and ranks second in natural gas, aims to increase daily oil production to 2.062 million barrels per day (bpd) in 2025, up from the current average of 1.7 million bpd, Verheijen said.
The government is also targeting $5 billion in gas investments and $30 billion in deep offshore oil development by 2029, bolstered by policies designed to attract foreign investment and boost output.
Production Gains and Refinery Milestones
OPEC data showed that Nigeria’s crude oil production reached 1.507 million bpd in December 2024, slightly up from November. Government figures, however, reported slightly lower production at 1.485 million bpd.
In May 2023, the Dangote Refinery, the world’s largest single-train refinery, began operations in Lagos. The facility has reduced Nigeria’s dependence on European imports of refined petroleum products, with officials predicting that it will help the country become a net exporter shortly.
Economic Backbone
Energy exports remain a critical pillar of Nigeria’s economy. The sector generates significant foreign exchange revenue, even as the country pursues renewable energy investments and infrastructure development to diversify its energy portfolio.
Nigeria’s ambitious energy reforms aim to address domestic energy needs while securing its position as a key player in global energy markets.
