Nigeria Leads as Africa’s Energy Investment Set to Hit $110bn in 2026

Africa's total energy investment is projected to reach $110 billion in 2026, with Nigeria continuing to be a major investment destination, according to the International Energy Agency (IEA).

Despite this projection, the continent attracts only 3.3% of global energy investment, a share that remains low relative to its population. The IEA's World Energy Investment 2026 report highlights that investment is concentrated in five countries: Nigeria, Algeria, Angola, Egypt, and Libya, which together represent about 70% of the total. However, investment in these nations has seen a significant decline over the last decade, falling from $50 billion in 2016 to $25 billion in 2025, primarily due to reduced upstream spending by oil and gas producers.

Overall upstream investment across Africa dropped from $68 billion in 2016 to $37 billion in 2025. Nevertheless, Nigeria remains crucial to the continent's oil and gas investment outlook. Upstream oil and gas investment in sub-Saharan Africa is expected to rebound by 12% to nearly $24 billion in 2026, following an 18% decline in 2025, with Nigeria anticipated to benefit from ongoing LNG and offshore developments.

Beyond hydrocarbons, the report notes a growing investor interest in power generation, critical minerals, and transport electrification as African countries aim to diversify their energy sources and enhance energy security. Investment in Africa's critical minerals sector reached $10 billion in 2024, though activity is concentrated in copper, cobalt, and graphite production. Challenges such as inadequate infrastructure, electricity shortages, and limited water supply continue to hinder refining and downstream processing across the continent.