NUPRC: Africa Requires $600bn Yearly to Meet Energy Demand

Africa must secure over $600 billion annually in upstream oil and gas investments to meet its growing energy demands, according to Gbenga Komolafe, Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission.

He emphasized Nigeria’s readiness to attract a significant portion of this funding to drive sustainable development across the continent.

Speaking at the 2025 Africa Energies Summit in London, Komolafe outlined Nigeria’s latest initiatives aimed at boosting exploration and strengthening investor confidence. He noted that transparent bid rounds conducted in 2022 and 2024 have successfully positioned Nigeria as a leading global investment hub for oil and gas.

Komolafe highlighted Nigeria’s commitment to becoming a resilient and investment-ready destination in Africa’s energy transition. Citing a 2023 report by the International Energy Forum, he stated that Africa must mobilize over $600 billion annually through 2030 to meet rising energy demands, which are projected to increase by 30 percent by 2040 due to industrialization, population growth, and efforts toward universal energy access.

Despite global efforts to reduce carbon emissions, Komolafe stressed that hydrocarbons will remain essential in meeting global energy needs. He referenced the BP Energy Outlook 2024, which forecasts that fossil fuels will still account for more than half of the world’s energy mix by 2050.

He emphasized Nigeria’s pragmatic approach to climate action, recognizing the need to balance development with environmental sustainability. According to him, recent licensing rounds have significantly reshaped the country’s energy sector, with awards conducted transparently to enhance competitiveness and investor participation.

He reported that Nigeria’s oil and gas sector has experienced a surge in investment, leading to increased reserves and production. The number of operational rigs has risen from eight in 2021 to 36 currently, with expectations to reach 50 by the end of the year.

With 210.54 trillion cubic feet of natural gas reserves—the largest in Africa—and 37.28 billion barrels of crude oil reserves, Komolafe stated that Nigeria holds immense potential. He credited the Petroleum Industry Act of 2021 for bringing certainty to the industry, along with advancements in high-quality geological and technical data.

He disclosed that Nigeria’s national production target stands at 3 million barrels per day, a goal requiring continuous investment in new basins and mature fields to secure future energy supplies for a growing population. To achieve this, the NUPRC has embarked on an ambitious data acquisition and reprocessing campaign, acquiring over 11,000 square kilometers of 3D seismic data under the broader 56,000 sq km Awalé Project.