Country Briefing: Foreign Direct Investment Trends in Nigeria’s Oil and Gas Sector

Summary

• Nigeria remains one of Africa’s largest hydrocarbon markets, with 37.5 billion barrels of proven crude oil reserves and 211.1 trillion cubic feet of proved natural gas reserves in 2024. Crude oil and lease condensate production averaged about 1.5 million barrels per day in 2024, while crude and condensate exports were about 1.3 million barrels per day.
• At the economy-wide level, Nigeria’s annual FDI inflows have fallen sharply from historical highs above US$8 billion in the late 2000s/early 2010s. Official World Bank data show FDI net inflows of US$3.31 billion in 2021, -US$0.19 billion in 2022, US$1.87 billion in 2023, and US$1.08 billion in 2024.
• High-frequency National Bureau of Statistics (NBS) capital-importation data indicate that foreign capital entering the oil and gas sector remained very weak through 2024: US$2.04 million in Q4 2023, US$0.00 million in Q1 2024, US$5.00 million in Q2 2024, and US$0.00 million in Q3 2024. Over the same quarters, total FDI into Nigeria ranged from US$29.83 million to US$183.97 million.
• The medium-term project pipeline improved in 2025. NUPRC reported that 43 approved field development plans could unlock 1.7 billion barrels of oil and 7.7 trillion cubic feet of gas, backed by more than US$20 billion in committed capital. However, execution risk remains high because of oil theft, vandalism, aging infrastructure, regulatory uncertainty, and financing constraints.