Nigeria’s Energy Sector Attracts $500 Million In New Investments In 2024

By Oluwabukola Jimoh ــ Last Update 05 November 2024

In a landmark development, Nigeria’s Federal Government has stimulated over $500 million in investments in the energy sector since January, leveraging fiscal incentives designed to boost the use of CNG, LPG, and LNG. The Special Adviser on Energy to President Bola Tinubu, Mrs. Olu Verheijen, shared this achievement during the 18th Oil Trading & Logistics (OTL) Africa Downstream Energy Week in Lagos.

Key incentives, including waivers on import duties and VAT for LNG, CNG, and LPG sales, have spurred private sector interest. Nigeria’s CNG initiative alone has attracted over $170 million, with vehicle conversion facilities expanding significantly, supporting the nation’s shift toward cleaner fuels.

Verheijen emphasized that the incentives also cover electric vehicles, aligning with Nigeria’s sustainable energy goals. This initiative also promises accessible cooking fuel for women and supports Nigeria’s UN SDG energy goals. Meanwhile, the government is advancing local refinery projects, including the 650,000-barrel Dangote Refinery, to support self-sufficiency in petroleum products.

The NMDPRA's Chief Executive, Farouk Ahmed, praised President Tinubu’s reforms, noting that streamlined regulations and efficient licensing have made Nigeria a more attractive investment destination.

Lagos Governor Babajide Sanwo-Olu highlighted the role of policy and investment-friendly environments in transforming Africa’s energy sector, urging collaboration to create a resilient, innovative, and sustainable future. We have to admit that the Nigerian government are making giant strides to make sustainable energy accessible to everyone in Nigeria, whether these investments will turn out positive for the end users is something we are all eager to see.

What do you think? Does this mean that this investment could have a positive impact on the energy sector for Nigeria?

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Oluwabukola Jimoh

Oluwabukola Jimoh is a dynamic academic writer and captivating energy blogger. She is able to delve into intricate subjects with an insatiable thirst for knowledge, crafting thought-provoking essays that engage and enlighten her readers.