ADDIS ABABA, July 30 – Investment in Africa’s upstream oil and gas sector fell to $37 billion in 2025, down from $68 billion in 2016, according to the International Energy Agency (IEA).
In its 2026 World Energy Investment Report, the IEA said Algeria, Angola, Egypt, Libya and Nigeria remained Africa’s largest oil and gas producers, accounting for about 70% of upstream investment and 80% of production.
The report said investment in the five countries dropped from $50 billion in 2016 to $25 billion in 2025, although Libya recorded growth. The agency linked the decline to changing investment conditions across the continent’s major producing markets.
Exploration spending reached nearly $6.5 billion in 2025, showing that companies are still investing in new discoveries. However, the IEA said oil and gas exploration remains a high-risk business, with a global commercial success rate of about 27%.
The report added that private and international oil companies continued to provide most funding for new projects, while national oil companies contributed about one-quarter of total upstream investment. It noted that limited government funding is making partnerships and alternative financing more important, citing Mozambique and Senegal as examples.
In Nigeria, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said recent reforms have attracted more than $10 billion in upstream investment. The regulator said projects including Bonga North, Ubeta and HI have benefited from faster approvals and improved fiscal policies. It also said 31 companies won 37 oil and gas blocks in the 2025 Licensing Round, while crude oil production rose to about 1.84 million barrels per day.
