Nigeria advances energy sector via deepwater projects and refinery growth

Nigeria is undergoing significant shifts in its energy sector through major industrial developments and regulatory reforms. The Dangote Refinery in Lagos has emerged as a major player, recently surpassing the United States to become Europe’s top supplier of aviation fuel, with approximately 466,000 tonnes shipped in June alone.

In the offshore sector, the Nigerian National Petroleum Company (NNPC) Limited and partners including Shell, Esso, and Agip have signed agreements for the Bonga Southwest/Aparo project. This deepwater development, located in OML 118, is expected to attract between $15 billion and $21 billion in investment, with projected peak production of 175,000 barrels of oil per day.

To support these large-scale projects, President Bola Tinubu signed the Deep Offshore Oil and Gas Project Incentives (Tax Remission) Executive Order 2026. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) suggests this order could attract up to $50 billion in investment. Meanwhile, the NUPRC has issued warnings to 31 companies that won 37 oil and gas blocks in a recent licensing round, mandating they pay signature bonuses within stipulated timeframes to avoid forfeiting their provisional awards.