$6.7bn investment in Nigeria’s energy sector in 2024, commendable – TM
The Tinubu Media Volunteers (TMV) has described the inflow of $6.7 billion in investments into the country’s energy sector in 2024 as encouraging and, therefore, commendable.
In a statement signed by its Chairman Chukwudi Enekwechi and Secretary Shedrach Sunday, TMV noted that the investment inflow was a consequence of incentives introduced by President Bola Tinubu’s administration.
“We note that this information was contained in the “Presidency Energy Sector Wrap-up 2024” and released by the Special Adviser to the President on Energy, Olu Verheijen.
“It is also observed that $5.5 bn of the amount was invested in the oil and gas sector, while $400 million was the federal government’s investment in the Presidential Metering Initiative and $700 million was channelled to the Clean Mobility and Clean Cooking Initiative.
“We also acknowledge that Shell has invested $5 billion in the Bonga North Deep Offshore Project, which is the first green field deep offshore project in over ten years. The project will boost Nigeria’s oil production capacity by about 110,000 barrels per day.
“It is our view that the implication of these investments is a clear demonstration of investors’ confidence in the Nigerian oil sector and also shows that the sector is stable and conducive for large-scale investments.
“We are also aware that several local investors have been showing interest in unlocking opportunities in the onshore fields with multi-billion naira acquisitions and investments in recent months.
“With the new investments in the upstream sector, Nigeria now has the capacity not only to meet its OPEC quota but to exceed it as production will peak at about 2.06 million barrels per day. All of these will help to boost the country’s revenue profile and production capacity.
“We also note that these investments have been enabled by the various executive orders signed by Mr. President, which include: The oil and gas Companies (Tax incentives, Exemption, Remission, etc) order 2024, Presidential Directive on Local Content Compliance Requirements 2024 and the Presidential Directive on Reduction of Petroleum Sector Contracting Costs and Timelines 2024.
“These proactive measures by the President have greatly impacted the oil and energy sectors in general coming with a renewed interest by local and foreign investors in the country,” it added.
The group also expressed optimism about more investment inflow into the energy sector in 2025.
