Shaping opportunity from complexity in West Africa’s oil and gas market – Nigeria and Ghana

The oil and gas sector across sub-Saharan Africa stands at a pivotal crossroads. From Nigeria’s hydrocarbon-rich delta and Angola’s prolific offshore blocks to the vast gas reserves of the East Africa rift valley, the region is redefining its energy landscape. As the continent recalibrates its approach to energy equity, security, and sustainability, industry stakeholders are presented with both significant challenges and unprecedented opportunities.

Explore how sub-Saharan Africa is shaping the future of energy amidst a rapidly evolving global context.

Highlights from the article:

Strong Growth and Strategic Importance for West Africa’s Oil and Gas Market

The West Africa oil and gas market is projected to achieve a compound annual growth rate (CAGR) of 6.5% from 2025 to 2033, reaching a value of approximately US$80 billion in 2023. Nigeria and Ghana are leading contributors, accounting for around 80% of the market's value. This underscores West Africa’s vital role in Africa’s energy landscape and its growing significance in global oil and gas supply.

Key Challenges: Funding Constraints, High Operating Costs, and Infrastructure Gaps

The sector faces five major challenges: limited access to funding for independent producers, persistent cost premiums (with Nigeria’s operating costs 40–50% higher than global averages), ongoing security threats, regulatory hurdles, and inadequate infrastructure. Addressing these issues is critical for unlocking the full potential of Africa’s oil and gas industry.

Emerging Solutions: Policy Reform, Technology Adoption, and the establishment of the Africa Energy Bank

Strategic reforms, such as Nigeria’s Petroleum Industry Act and the establishment of the $5 billion Africa Energy Bank, aim to improve regulatory certainty and funding access. Oil and gas companies are increasingly investing in digital tools and data analytics to boost efficiency and reduce costs. These innovations, alongside collaborative public-private partnerships, are essential for sustainable growth and energy security in the region.