In a remarkable display of economic resilience, Nigeria's oil and gas sector demonstrated significant growth and strategic transformation in 2025, signaling a promising trajectory for the nation's energy landscape.

President Bola Tinubu's Renewed Hope Agenda has been instrumental in reshaping the industry, with targeted reforms designed to attract international investment and reinvigorate domestic production capabilities. The government approved over 40 Field Development Plans (FDPs), unlocking an impressive 1.7 billion barrels of oil and 7.7 trillion cubic feet of gas, while attracting more than $20 billion in capital investments.

Key milestones included strategic partnerships and acquisitions that reshaped the sector's ecosystem. Renaissance Africa Energy completed the purchase of Shell's Nigerian subsidiary, while NNPC, TotalEnergies, and South Atlantic Petroleum signed a significant deep offshore Production Sharing Contract for crude and gas exploration.

The year witnessed notable achievements in production and supply. Oil output dramatically increased, reaching 1.71 million barrels per day in July 2025. Gas-to-power supply also strengthened, highlighting the government's commitment to domestic energy utilization. The launch of Project IMMBOPD aims to add another 1 million barrels per day to production, demonstrating ambitious national goals.

Regulatory bodies like the Nigerian Upstream Petroleum Regulatory Commission and Nigerian Midstream and Downstream Petroleum Regulatory Authority played crucial roles in implementing progressive policies. The 2025 Licensing Round offered 50 exploration blocks with flexible operational frameworks, lower signature bonuses, and tailored financial requirements to attract diverse investors.

Despite these positive developments, challenges persist. Ongoing security concerns and community issues continue to influence multinational oil companies' strategies, with some choosing to divest from onshore operations. While indigenous firms are expanding, questions remain about their capacity to match the exploration capabilities of major international players.

The cooking gas sector showed promising growth, with supply increasing by 11% towards the year's end. The NNPC/Heirs Energies OML 17 Joint Venture also advanced Nigeria's gas commercialization agenda by signing Gas Flare Commercialization Agreements, underscoring a commitment to environmental stewardship.

As 2025 concludes, Nigeria stands at an exciting crossroads. With strategic investments, regulatory reforms, and a clear vision for energy sector development, the country is positioning itself as a dynamic player in the global energy market, offering hope and opportunity for continued economic transformation.