NIGERIA MAINTAINS AFRICA’S UPSTREAM INVESTMENT LEAD DESPITE CAPITAL DECLINE

Nigeria has retained its position as Africa’s leading destination for upstream oil and gas investment, despite a decline in capital inflows into the sector.

Industry data showed that while investment levels have reduced compared to previous periods, Nigeria continues to attract significant interest due to its large hydrocarbon reserves, established energy infrastructure, and ongoing sector reforms.

Energy stakeholders said challenges such as regulatory uncertainty, operational costs, security concerns, and global shifts toward cleaner energy have affected investment decisions in the upstream sector.

However, experts noted that reforms introduced to improve transparency, streamline operations, and create a more investor-friendly environment have helped Nigeria remain competitive among African oil-producing countries.

They added that attracting fresh capital will require continued policy consistency, improved security around oil assets, and stronger collaboration between government and private sector operators.

Nigeria’s energy sector remains a key contributor to government revenue and foreign exchange earnings, with stakeholders emphasising the need for sustained investment to boost production and support long-term economic growth.