NIGERIA LEADS AFRICA’S $221BN OIL, GAS INVESTMENT DRIVE, EYES $50BN OFFSHORE PROJECTS
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By: Muftau Fatimo
Nigeria is emerging as a major destination for oil and gas investments in Africa, with the country projected to attract between $30bn and $50bn for 22 major offshore projects expected to commence by 2030, according to a report by Industrial Info Resources.
The report disclosed that more than 800 active capital projects covering oil and gas production, pipelines and terminals are currently being tracked across Africa, with a combined investment value exceeding $221bn.
It noted that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) expects 22 major offshore projects to commence in Nigeria between now and 2030, with the developments estimated to have an investment potential of between $30bn and $50bn.
The projection was earlier disclosed by the NUPRC Chief Executive Officer, Oritsemeyiwa Eyesan, during the Society of Petroleum Engineers’ annual conference in Lagos on August 5.
“Since 2024, the NUPRC has approved over $57bn in field development plan(s), some of which have translated to final investment decisions,” Eyesan said.
According to Industrial Info Resources, Africa’s oil and gas investment outlook is being driven by increasing concerns over energy security and geopolitical uncertainties.
The report noted that several previously sanctioned but delayed upstream and liquefied natural gas projects are expected to advance towards first production as investors respond to changing global energy dynamics.
The Senior Vice-President of Research, Oil & Gas, at Industrial Info Resources, Gordon Gorrie, said the anticipated increase in investment was not limited to Nigeria, as several African countries were also expanding spending on oil production, midstream infrastructure and other energy developments.
“The next 12-18 months will be a critical era for large-scale oil and gas projects in Africa. Several sanctioned but long-delayed upstream and liquefied natural gas developments will move toward first production,” Gorrie said.
He explained that most of the capital expenditure would be directed towards offshore oil developments, while part of the investment would go into new liquefied natural gas (LNG) liquefaction capacity.
Gorrie attributed the renewed interest in African energy projects partly to developments in international energy markets, saying global geopolitical risks had influenced the preferences of international energy buyers.
“The current global risk crisis has pushed international buyer interest in African LNG away from Middle Eastern uncertainties,” he said.
The report identified Mozambique LNG, being developed by TotalEnergies, as one of the major projects expected to contribute significantly to Africa’s expanding energy investment outlook.
The project, with an annual production capacity of 12.9 million tonnes, is scheduled for completion in 2030. It added that ExxonMobil was targeting a final investment decision in 2026 for the 18-million-tonne-per-annum Rovuma LNG project, also located in Mozambique.
Industrial Info Resources estimated Africa’s oil and gas investment outlook for the year at $41bn, with the continent’s oil production projected to reach 11.4 million barrels per day.
For Nigeria, the report stated that crude oil production increased to 1.71 million barrels per day between April 2025 and April 2026.
It further noted that the management of the Nigerian National Petroleum Company Limited had projected that the country could increase its crude production by an additional 100,000 barrels per day by the end of 2026.
The report also identified Shell’s Bonga/Southwest/Aparo complex as one of Nigeria’s major deepwater developments, with the project expected to produce about 150,000 barrels of crude oil per day when completed.
The renewed investment outlook comes amid efforts by the Federal Government to attract more capital into Nigeria’s energy sector.
President Bola Tinubu has signed a series of executive orders aimed at improving the investment environment and encouraging increased investment in the country’s oil and gas industry.
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