Shell: Nigeria Faces Fierce Competition for Foreign Investments Amid Global Energy Transition

 Oil giant Shell has warned that Nigeria is facing increasing competition from other countries in attracting foreign direct investment (FDI) in the oil and gas sector, as global energy firms reassess their portfolios in response to the shift toward cleaner energy sources.

Speaking at the Nigeria International Energy Summit in Abuja, Shell’s Managing Director, Osagie Okunbor, emphasized that while Nigeria remains an important player in the global oil market, factors such as regulatory uncertainty, security concerns, and infrastructural challenges have made investors hesitant to commit long-term capital to the country’s petroleum sector.

He noted that countries like Angola, Guyana, and Mozambique have become attractive investment destinations due to their favorable regulatory environments and emerging oil fields. He called on Nigerian policymakers to implement reforms that will improve the business climate, enhance security in oil-producing regions, and address issues such as crude oil theft and pipeline vandalism.

Okunbor added that Shell remains committed to Nigeria but is also adapting its strategy to align with the global push for renewable energy, carbon reduction, and sustainability.

Industry observers say Nigeria must act swiftly to maintain its competitiveness, as failure to attract fresh investments could slow down production growth and impact government revenues from oil exports.