Nigeria is protecting itself to lead Africa’s oil and gas spending, as the continent is expected to contribute $41 billion to the projected $504 billion global Exploration and Production (E&P) capital expenditure by 2026.
This is according to the African Energy Chamber’s (AEC) State of African Energy 2026 Outlook Report.
The report explains that what is driving the continent’s growth: rising offshore investments in countries such as Nigeria, Mozambique, and Angola. It notes that Africa’s oil and gas output is expected to reach 11.4 million barrels of oil equivalent per day by 2026, with Nigeria leading in remaining recoverable resources, mainly in the Niger Delta.
The AEC outlines why production growth depends on several factors, including access to investment opportunities, exploration success, and flexible government policies that respond to investor demands. It also says African operators may benefit from surplus capacity in the global rig market and lower day rates, which could help advance more projects.
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The report highlights where new opportunities lie. Many African countries are offering fresh onshore and offshore blocks through licensing rounds, supported by improved contract terms designed to attract foreign capital.
It also reveals how mergers and acquisitions are shifting. In the first half of 2025, global upstream deals reached $51 billion, with Africa recording $2.7 billion, including Vitol Group’s purchase of Eni’s assets in Côte d’Ivoire and Congo.
The AEC adds that while political and security risks remain, governments in countries like Algeria, Angola, Nigeria and Libya are strengthening regulatory frameworks to encourage investment.
Looking ahead, Africa’s demand for refined products is expected to rise from 4 million barrels per day in 2024 to over 6 million barrels per day by 2050, increasing investor interest in major producers such as Nigeria, Angola and Libya.
