Nigeria signs 28 oil field development plans worth $18.2bn, boosting production potential by 1.4bn barrels and reinforcing Africa’s investment leadership

Nigeria achieved a major investment breakthrough in 2025, signing 28 new field development plans valued at $18.2 billion, with an estimated production potential of 1.4 billion barrels of oil, the Minister of State for Petroleum Resources, Heineken Lokpobiri, announced on Tuesday.

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The disclosure was made during the opening ceremony of the 9th Nigeria International Energy Summit, themed “Energy for Peace and Progress: Securing Our Shared Future.”

Lokpobiri said the developments have positioned Nigeria as Africa’s leading destination for oil and gas investments, with four of the seven major Final Investment Decisions (FIDs) announced across the continent between 2024 and 2025 made in the country.

“This did not happen by accident; it is the result of steady work, policy clarity, and better governance,” Lokpobiri stated.

“Our investment climate allows for free movement of capital and renewed investor confidence in Nigeria’s upstream sector.”

The minister attributed the turnaround to the full implementation of the Petroleum Industry Act, which provides a stable fiscal framework, clearer licensing processes, and predictable contract terms.

He also highlighted the Upstream Petroleum Operations (Cost Efficiency Incentives) Order 2025, which grants tax credits and lowers operating costs for producers.

Lokpobiri pointed to Project One Million Barrels, launched in October 2024, which boosted crude production to between 1.7 and 1.83 million barrels per day, representing a 20% increase over previous output.

The number of active rigs rose from 14 in 2023 to over 60 as of early 2026.

The minister noted that long-delayed asset divestments by international oil companies had added roughly 200,000 barrels per day to national output, transferred to Nigerian firms in record time.

However, he acknowledged ongoing challenges in the oil and gas service sector, including structural constraints in engineering, procurement, and construction (EPC), and misinterpretations of the Nigerian Oil and Gas Industry Content Development Act.

Addressing broader African energy issues, Lokpobiri called for stronger support for the African Energy Bank, warning that Africa’s $120 billion annual hydrocarbon import bill represented a missed opportunity for regional growth.

Meanwhile, the Independent Petroleum Producers Group (IPPG) urged reforms to reduce bureaucracy, streamline industry fees, and improve access to long-term capital to sustain the sector’s growth.

IPPG Chairman Adegbite Falade noted that indigenous producers now account for over 50% of national production, marking a historic milestone for local participation.

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Stakeholders agreed that Nigeria’s oil and gas sector is on a strong recovery path, driven by policy clarity, regulatory reforms, and strategic investments, emphasizing collaboration between government, indigenous companies, and international partners to consolidate growth, expand domestic energy access, and strengthen Nigeria’s position as a regional and global energy hub.