As global energy investment hits a record $3.3 trillion in 2025, Nigeria is stepping up efforts to secure a bigger share of the pie — with a focus on both fossil fuels and renewables.
According to a new International Energy Agency (IEA) report, two-thirds of global energy spending will be channeled into clean technologies such as renewables, nuclear, low-emission fuels, and electrification. That’s double the amount going into oil, gas, and coal.
Despite ongoing economic and geopolitical headwinds, Nigeria is pushing forward with reforms and investments aimed at addressing deep energy poverty — including unreliable electricity for over 80 million people and lagging oil output.
“In Africa, overall debt servicing costs are equivalent to over 85 per cent of total energy investment in 2025,” the IEA warned, citing capital flight from developing economies and currency instability as major setbacks.
Still, the story is shifting for Nigeria. Special Adviser to the President on Energy, Olu Verheijen, revealed that over $8 billion in new deepwater oil and gas investments have already been secured under President Bola Tinubu’s administration.
“This inflow of capital into Nigeria’s offshore energy sector marks a significant shift in investor confidence,” Verheijen said, attributing the boost to recent policy reforms and executive actions that reduced red tape and improved project viability.
Projects like Shell’s Bonga North and TotalEnergies’ Ubeta gas project, in collaboration with NNPC, are helping drive this turnaround.
In the renewable space, Nigeria has seen over $2 billion in investment from 2014 to 2024, targeting solar manufacturing, battery tech, and rural mini-grids. The country’s Integrated Resource Plan sets an ambitious target: $122 billion in energy investments by 2045, with $56 billion for solar and $39 billion for hydropower.
Globally, solar power alone is expected to attract $450 billion in 2025, making it the single largest recipient of clean energy capital.
“The rise in clean energy investment reflects not only efforts to reduce emissions but also the growing influence of industrial policy, energy security concerns, and the cost competitiveness of electricity-based solutions,” the IEA stated.
To encourage further local investment, the federal government recently issued an executive order allowing companies to retain 50% of any cost savings made from operational efficiency, while capping tax credits at 20% of project costs.
Meanwhile, indigenous firms like Seplat Energy, Oando, and Green Energy now produce over 50% of Nigeria’s onshore oil, up from 40% just a year ago — signaling a shift toward greater local ownership in the sector.
As global investors pour billions into clean and conventional energy alike, Nigeria appears poised to ride the wave — if it can sustain momentum and bridge funding gaps that still hold many African economies back.
