Nigeria secured US$18.2 billion in new oil investments in 2025 after approving 28 field development plans with an estimated production potential of 1.4 billion barrels, Oil Minister Heineken Lokpobiri said on Tuesday, signalling a recovery in Africa’s largest crude producer after years of stalled projects.
Speaking at the opening of the 9th Nigeria International Energy Summit in Abuja, Lokpobiri said the approvals marked a turning point for the country’s oil and gas sector, which had suffered from declining output, investor uncertainty and delayed investment decisions for more than a decade.
“In 2025 alone, 28 new field development plans worth US$18.2 billion were signed, with the potential of 1.4 billion barrels of oil,” Lokpobiri told delegates. “Between 2024 and 2025, of the seven major final investment decisions announced across Africa, four were in Nigeria.”
The Nigeria International Energy Summit is the government’s annual platform for energy policy dialogue and investment promotion. This year’s event is themed “Energy for Peace and Progress: Securing Our Shared Future.”
Lokpobiri said Nigeria had re-emerged as a leading destination for oil and gas capital on the continent due to reforms that improved policy clarity, fiscal terms and regulatory governance, restoring confidence among international and domestic investors.
“This did not happen by accident,” he said. “It is the result of steady work, policy clarity and better governance.”
Nigeria’s upstream sector has long been constrained by regulatory uncertainty and high operating costs, despite holding Africa’s largest proven oil reserves. For years, final investment decisions on major projects were delayed as companies weighed security risks, fiscal instability and capital flight.
Lokpobiri said the full implementation of the Petroleum Industry Act (PIA), enacted in 2021, had helped stabilise the sector by providing clearer licensing processes, predictable contract terms and a more competitive fiscal framework.
He added that cost pressures were further addressed through the Upstream Petroleum Operations (Cost Efficiency Incentives) Order 2025, which offers tax credits and other incentives aimed at lowering production costs and improving project economics.
The minister also pointed to tangible gains from “Project One Million Barrels,” launched in October 2024 to boost output. He said crude production had risen to between 1.7 million and 1.83 million barrels per day, representing an increase of about 20% from earlier levels.
“In less than a year, production rose by roughly 300,000 barrels per day,” Lokpobiri said, adding that the number of active drilling rigs had increased from 14 in 2023 to more than 60.
Nigeria’s output has been volatile in recent years, affected by oil theft, pipeline vandalism and underinvestment. The government has sought to stabilise production as it relies heavily on oil exports for foreign exchange and public revenue.
Lokpobiri also highlighted the completion of long-delayed asset divestments by international oil companies, which transferred onshore and shallow-water assets to Nigerian firms. He said the transactions added around 200,000 barrels per day to national output and were concluded faster than expected.
However, the minister acknowledged ongoing challenges in the oil services sector, particularly in engineering, procurement and construction. He said misinterpretation of local content regulations had encouraged the emergence of under-capitalised firms while sidelining experienced contractors.
At a broader continental level, Lokpobiri said Africa’s annual US$120 billion hydrocarbon import bill represented a missed opportunity for domestic production and value creation. He urged stronger support for the African Energy Bank, which is headquartered in Nigeria, to mobilise financing for the sector.
Industry stakeholders echoed calls for further reforms. Adegbite Falade, chairman of the Independent Petroleum Producers Group, said Nigeria needed to streamline industry fees, reduce bureaucracy and improve access to long-term capital to sustain growth.
“For the first time, indigenous producers now account for more than 50 percent of national production,” Falade said, attributing the shift to asset divestments, improved pipeline availability and reduced crude losses.
Despite lingering challenges, delegates at the summit said Nigeria’s oil and gas sector was on a recovery path, driven by regulatory reforms, renewed investment and stronger collaboration between government, local firms and international partners.
