Nigeria remains top oil investment hub despite regional capital drop
Nigeria continues to lead Africa’s oil and gas investment landscape, even as overall upstream capital in the continent has declined sharply. The International Energy Agency (IEA) highlights that Nigeria and four other major producers still dominate Africa’s upstream investment and production. The latest IEA report points to shifting trends, with new investment increasingly flowing into emerging oil and gas nations. Nigeria is working to attract fresh capital and maintain its position amid rising competition.
TLDR
- The IEA’s 2026 World Energy Investment Report shows upstream oil and gas investment in Africa dropped from $68bn in 2016 to $37bn in 2025, a 46% decline.
- Nigeria, Algeria, Angola, Egypt, and Libya account for 70% of Africa’s upstream investment and 80% of its crude oil and gas production.
- Investment in emerging producers like Mozambique, Namibia, Senegal, and Uganda rose from $1.5bn in 2016 to $5bn in 2025.
- Exploration capital expenditure in Africa reached almost $6.5bn in 2025, with national oil companies taking a larger role despite financial constraints.
- Nigeria’s government has introduced fiscal incentives and reforms since the Petroleum Industry Act in 2021 to boost investor confidence and increase oil and gas production.
