Africa’s energy sector is projected to attract about $110 billion in investment in 2026, with Nigeria remaining one of the continent’s key destinations despite a continued slowdown in upstream oil and gas spending across major producing countries, the International Energy Agency (IEA) has said.
In its World Energy Investment 2026 report, the IEA noted that while energy investment across Africa is growing, the continent still receives only 3.3 per cent of global energy funding even though it accounts for roughly one-fifth of the world’s population.
The report said investment remained heavily tilted towards fossil fuels but is gradually expanding into power generation, critical minerals and transport electrification as African economies push to diversify their energy sources and improve energy security.
It added that spending remained concentrated in five countries, Nigeria, Algeria, Angola, Egypt and Libya — which together account for about 70 per cent of total energy investment in Africa.
However, the agency warned that investment levels in these leading markets have dropped sharply over the past decade, falling from around $50 billion in 2016 to about $25 billion in 2025, largely due to reduced upstream oil and gas activity.
Overall upstream investment in Africa stood at $37 billion in 2025, down from $68 billion in 2016, although Nigeria continues to play a central role in the continent’s oil and gas outlook.
The IEA projected a 12 per cent rebound in upstream oil and gas investment in sub-Saharan Africa in 2026 to nearly $24 billion, following an 18 per cent decline the previous year. Nigeria is expected to benefit from renewed activity in LNG projects and offshore developments.
The report highlighted ongoing liquefied natural gas projects in Nigeria and Mozambique, supported by both international oil companies and local operators, as well as continued deepwater exploration efforts in Nigeria involving major global energy firms.
It also noted a shift in investor attention towards emerging producers such as Mozambique, Namibia, Senegal and Uganda, where energy investments have grown steadily over the past decade as companies seek new frontier opportunities.
Beyond oil and gas, the IEA said Africa’s critical minerals sector attracted about $10 billion in investment in 2024, with production still concentrated in resources such as copper, cobalt and graphite.
However, it warned that weak infrastructure, power shortages and limited water supply continue to hinder value addition and local processing across the continent, limiting industrial gains from mineral resources.
The report also underscored Africa’s major energy access gap, estimating that around 590 million people still lack electricity, while nearly one billion people do not have access to clean cooking solutions.
It stressed that closing these gaps would require far higher investment in electricity grids, renewable energy systems and clean cooking technologies to support development goals across African nations.
On the global stage, the IEA projected total energy investment to reach a record $3.4 trillion in 2026, with clean energy accounting for about $2.2 trillion — nearly double the expected spending on fossil fuels.
The agency noted that Africa’s ability to benefit from the global energy transition would depend on improved financing conditions, stronger infrastructure development and more stable policy environments capable of attracting long-term private investment.
