Nigeria’s oil and gas sector experienced a transformative 2025, marked by policy reforms, strategic acquisitions, and renewed investment. The year built on the momentum from 2024, with the upstream, midstream, and downstream segments recording significant developments that shaped Nigeria’s energy landscape. Stakeholders navigated a mix of regulatory changes, market fluctuations, and operational milestones, reflecting both challenges and opportunities in the nation’s hydrocarbon space.
In March, President Bola Tinubu signed the “Upstream Petroleum Operations Cost Efficiency Incentives Order (2025),” introducing performance-based tax incentives for upstream operators achieving verified cost savings. The policy, targeting onshore, shallow water, and deep offshore operations, capped tax credits at 20% of annual liabilities while protecting government revenue. This followed similar 2024 reforms, which improved fiscal terms, reduced project timelines, and aligned local content rules with global best practices.
The year also saw notable corporate shifts, including Renaissance Africa Energy Holdings’ acquisition of Shell Petroleum Development Company (SPDC) for $2.4 billion. Renaissance, a consortium of Nigerian firms and one international partner, now produces roughly 100,000 barrels per day and operates modular refineries in the Niger Delta. Other Nigerian companies, including Oando, Seplat, and Chappal Energies, also acquired onshore and shallow water assets from international operators, highlighting a growing domestic presence in the country’s oil and gas landscape.
2025 brought leadership changes across key institutions, most prominently at the Nigerian National Petroleum Company (NNPC), where Mele Kyari and other board members were replaced. Bayo Ojulari became the new GCEO, tasked with increasing investment to $30 billion by 2027 and 2 million barrels of daily production, while regulatory authorities NUPRC and NMDPRA also appointed new executives. These leadership transitions signal a renewed focus on boosting oil and gas output, refining capacity, and gas production targets over the coming decade.
Despite early disruptions in the downstream sector, including disputes involving Dangote Refinery, stability returned following government intervention. The year also featured a milestone Final Investment Decision (FID) for Shell’s HI gas field, promising 350 million cubic feet of gas per day and 60,000 barrels of oil equivalent per day by 2030. By October, Nigeria’s rig count rose to 69, reflecting renewed exploration activity, while NUPRC’s 2025 licensing round opened 50 oil and gas blocks to investors, expected to attract $10 billion and add 400,000 barrels per day to national output in the next decade.
source: This day