- Nigeria and emerging hubs lead Africa’s upstream oil and gas investment in 2025.
- Gas and LNG projects drive Africa’s 2025 oil and gas investments.
Africa remains a strategic hydrocarbon frontier despite the global energy transition and years of underinvestment. Offshore oil and gas developments, along with large-scale liquefied natural gas (LNG) projects, capture most investor attention. According to Wood Mackenzie, Africa will attract tens of billions of dollars in upstream capital expenditure in 2025. Investors focus most of these funds on fewer than ten key hubs. These hubs combine proven reserves, existing export infrastructure, and fiscal frameworks that let operators earn returns even when oil prices fluctuate.
Gas drives most new investment. LNG-linked projects and offshore gas developments receive increasing capital allocations. African producers position themselves as reliable suppliers for Europe and Asia, while also supporting domestic electricity and industrial demand.
Nigeria remains the continent’s leading investment hub. It attracted $5.3 billion in upstream spending in 2025. Stable fiscal policies, a clear regulatory framework, and targeted gas incentives encourage both local and international operators to launch new projects. Angola follows with over $500 million in investment. Congo, Mozambique, Uganda, Côte d’Ivoire, Ghana, and Gabon each exceeded $500 million. Mozambique’s LNG projects and Uganda’s exploration initiatives drive notable growth.
Foreign oil majors adjust their African strategies. They exit high-risk onshore assets and focus on offshore fields and gas projects. These projects offer longer reserve lifespans and lower security risks. Investments now concentrate in hubs rather than spreading across entire countries. Meanwhile, national oil companies and indigenous producers acquire divested assets. Private equity and commodity traders often support these acquisitions, especially for mature fields.
Olu Verheijen, Special Adviser to the Nigerian President on Energy, highlighted Nigeria’s policy turnaround: “Between 2015 and 2023, Nigeria captured just 4% of sanctioned African FIDs. Over the last two years, we secured 38%, reflecting decisive reforms. We now offer globally competitive deep-water fiscal terms and Africa’s most attractive gas incentives. In 2026, additional FIDs are expected thanks to targeted incentives and a stable policy framework.”
Africa’s eight largest upstream oil and gas investment hubs in 2025 demonstrate both the strength of established infrastructure and the promise of untapped resources. As the continent faces global energy pressures and moves toward cleaner fuels, these hubs will shape Africa’s oil and gas sector in the years ahead.