Africa’s oil and gas sector is poised for substantial investment, with projections indicating approximately $43 billion in capital expenditure by operators and developers in 2025. This influx of funds is expected to significantly benefit Nigeria, particularly in its deepwater exploration initiatives.
According to a recent report from the African Energy Chamber, Nigeria’s extensive reserves and untapped asset portfolio are driving growth across the continent, attracting both established producers and new investors.
Looking ahead, the chamber’s “State of African Energy 2025 Outlook Report” forecasts capital expenditure to reach a decade-high of $54 billion by 2030, driven by new Final Investment Decisions (FIDs). While the projected 2025 expenditure is slightly lower than the $47 billion seen in 2024, the previous year saw a notable 23 percent increase in oil and gas project investments compared to the year before.
Regional analysis reveals that West and North Africa are expected to dominate spending through 2030. West Africa, featuring established oil-producing nations like Nigeria and Angola, is projected to account for over half of the continent’s total capital expenditure.
Furthermore, emerging players such as Mauritania, Senegal, Ghana, and Côte d’Ivoire are anticipated to contribute significantly to capital expenditure in the latter part of the decade. North Africa, with its key players including Libya, Algeria, and Egypt, is expected to represent roughly 35 percent of the overall expenditure, as detailed in the report.
Despite the growing emphasis on natural gas, with major international companies developing gas projects and LNG export facilities across Africa, liquid hydrocarbons are projected to remain the primary focus of investment. These are anticipated to attract 60 percent of the total capital expenditure through 2030.
However, natural gas is steadily gaining traction, with its share of annual expenditure expected to rise from approximately 30 percent in 2023 to over 40 percent by the end of the decade, according to the African Energy Chamber’s findings.
In recent years, international energy companies have concentrated on new gas and Liquified Natural Gas (LNG) projects in West Africa and the promising exploration region of Namibia, where substantial oil reserves have been discovered.
