Nigeria’s Oil Sector Sees $5.5 Billion Boost from Divestments
Nigeria’s oil industry has received a substantial injection of capital, with recent divestments by International Oil Companies (IOCs) unlocking over $5.5 billion in new investments. This significant inflow, alongside sector reforms, has also resulted in a marked boost to national crude output, adding an estimated 200,000 barrels per day (bpd) to production capacity.
The details were disclosed by President Bola Tinubu, who spoke via the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, at the recent Africa Energy Week in Cape Town, South Africa. The President highlighted that the development demonstrates growing confidence in his administration’s efforts to reform the oil sector.
President Tinubu affirmed that Nigeria is now “open for business,” stressing the government’s commitment to creating a predictable and transparent operating environment, largely governed by the Petroleum Industry Act (PIA). He emphasised that the asset transfers represent more than mere transactions; they are a transfer of “confidence, capability and ownership” within the nation’s energy landscape.
The reported production gains indicate that Nigeria’s total crude output has now climbed to between 1.7 and 1.83 million bpd. Further underscoring the success of the reforms, the number of active drilling rigs in the country has risen sharply, from 31 at the start of the year to 50 by July 2025. This increase in exploration activity is a clear sign that the new regulatory environment is successfully unlocking value across the sector.
Beyond national achievements, the President used the platform to address broader African energy security. He urged continental peers to reduce their reliance on imported petroleum products, noting that African nations collectively spend over $120 billion annually on imports despite possessing vast hydrocarbon resources. He called for greater regional cooperation and advised that a portion of Africa’s substantial domestic capital, estimated at $4 trillion, should be channelled into building essential oil and gas infrastructure.
In the context of the global energy transition, President Tinubu maintained that oil remains a crucial element for Africa’s development, arguing that energy focus must remain centred on availability, accessibility, and affordability across all energy sources.
