PricewaterhouseCoopers (PwC) has called on South African investors, banks, and policymakers to take direct stakes in Nigeria’s upstream oil industry as part of efforts to secure steady crude supply for their refineries and strengthen energy cooperation across Africa.

The advisory was made in Lagos by PwC’s Africa Oil and Gas leader, who argued that South Africa could improve its energy security by investing directly in oil exploration and production assets in Nigeria, similar to the strategy historically used by major Western oil companies.

He explained that South Africa’s limited domestic crude production leaves it heavily dependent on imports, while Nigeria continues to hold significant upstream opportunities that could support long-term supply partnerships.

He also suggested that cross-border investments and dual listings between Nigerian and South African capital markets could help raise funding, improve liquidity, and expand participation in energy projects across both countries.

In a related development, the Nigerian Upstream Petroleum Regulatory Commission has encouraged domestic refiners, including members of the Crude Oil Refinery Owners Association of Nigeria, to consider acquiring oil blocks in upcoming licensing rounds. According to the regulator, upstream participation would help refiners secure more reliable crude supply and reduce dependence on external arrangements.

The commission also advised refinery operators to strengthen long-term supply agreements with crude producers while working to address infrastructure challenges such as pipeline capacity, storage limitations, and logistics bottlenecks that continue to affect efficient delivery.

Meanwhile, Nigeria’s downstream expansion, driven by projects such as the Dangote Group refinery, is expected to increase regional fuel availability and reduce import reliance, adding further momentum to discussions on energy cooperation.

Energy analysts say deeper collaboration between Nigeria and South Africa could unlock investment in oil, gas, renewables, and technology, while improving energy security and creating new opportunities for industrial growth across the continent.