Oil, gas sector seen attracting new investments in 2025

Oil and gas investments may attract more investments in 2025, according to experts.
Foreign Direct Investments (FDIs) into Nigeria rose by 248 percent in the third quarter of 2024 to $103.82 million, but this still remains too low to engender growth needed to turnaround the investment-starved economy.
FDI, which consists of equity and capital needed for long term economic development, declined to its lowest on record in the second quarter (Q2) to $29.8 million, up from $119 million in the first three months of the year.
But the unexpected increase seen in Q3 was attributed to the reforms implemented in the energy sector by President Bola Tinubu, which have since paved the way for more investments, according to Adeola Adenikinju, president of the Nigerian Economic Society (NES).
“The FDI will be coming from the energy sector, the petroleum, the oil and gas sector because of the reforms that the president announced or implemented in the energy sector. I think more investment will come to that sector,” Adenikinju told our correspondent.
He noted that the relative peace the oil-rich Niger Delta is witnessing, together with the full liberalisation of the oil sector, would likely lure more investors and may lead to a sustained growth in direct investment.
“I expect that more investment will flow towards gas, to the refinery sector. So, that sector is likely to be very bullish in the future, very likely to grow,” the economics professor said.
Earlier this year, TotalEnergies had pledged around $500 million to a joint venture with the state-owned Nigerian National Petroleum Company (NNPC) Limited to develop the Ubeta onshore field. With an expected output of 300 million cubic feet per day, this project is set to strengthen the gas supply to the Nigerian Liquefied Natural Gas (NLNG) plant.

source: businessday.ng

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