Nigeria has retained its position as Africa’s leading destination for upstream oil and gas investment despite a sharp decline in capital flowing into the continent’s energy sector.

According to the International Energy Agency (IEA) in its 2026 World Energy Investment Report, Nigeria, alongside Algeria, Angola, Egypt and Libya, accounts for 70% of Africa’s upstream investment and 80% of the continent’s oil and gas production.

The report showed that total upstream investment across Africa fell from $68 billion in 2016 to $37 billion in 2025, with investment in the five major producing countries dropping by half over the period. However, Nigeria remains a key investment destination, supported by ongoing deepwater and liquefied natural gas (LNG) projects.

The IEA noted that while established producers continue to dominate the sector, emerging oil and gas producers such as Mozambique, Namibia, Senegal and Uganda are attracting increasing investment through new deepwater and LNG developments.

It also projected that upstream investment in sub-Saharan Africa will rise by 12% to about $24 billion in 2026, driven by new projects involving international oil companies.

The report added that Nigeria’s ongoing gas expansion and deepwater developments are expected to strengthen future production, even as the country faces increasing competition from newer oil-producing nations seeking global investment.