Nigeria could double investment into its energy sector within five years after joining the International Energy Agency, its chief Fatih Birol said on Thursday, as nations seek partners they can “trust” after supply disruptions from the wars in Iran and Ukraine.
Speaking during a visit to Abuja, Birol told Reuters that Nigeria’s admission as an associate member of the Paris-based energy watchdog would help attract investment, deepen technical cooperation and give Africa’s largest oil producer a stronger voice in global energy policy discussions.
“My goal is, in a very short period of time, in five years, at least doubling the energy investments Nigeria is receiving today,” Birol said.
Nigeria, Africa’s top oil producer, needs substantial capital to unlock opportunities across oil, gas and renewable energy, particularly solar power, he said.
Birol said Nigeria’s resource base, together with shifting global energy trade patterns, could help attract capital from governments and private investors seeking reliable energy partners.
“The most scarce commodity is not oil, not gas, not uranium, not lithium. It is trust,” he said. “Countries are looking for partners they can rely on.”
He described Nigeria as a credible energy supplier and said exports from the Dangote refinery, which processes about 700,000 barrels of crude a day, had helped ease fuel-supply pressures in Europe in recent months.
EXPANSION PLANS
Nigeria aims to nearly double oil production to 3 million barrels per day by 2030 and is counting on energy sector reform, infrastructure upgrades and improved security to prevent oil theft to help attract foreign capital after years of underinvestment.
Nigeria became an associate member of the IEA in July after the agency’s member countries, including the United States, Germany, Italy and Japan, unanimously approved its application, Birol said.
The IEA and Nigeria are expected to sign a joint work programme in Abuja outlining cooperation in areas including natural gas, electrification, clean cooking, energy efficiency and energy data development.
Nigeria will work with the IEA to improve areas such as energy data collection and reporting systems, an area investors and market participants have long cited as lacking, particularly for oil production, export and consumption statistics.
ENERGY SECURITY RISKS
Birol said geopolitical tensions and disruptions to major energy supply routes were reshaping global trade flows and creating risks for consumers.
Countries have been reassessing energy partnerships and supply chains following market disruptions caused by Russia’s full-scale invasion of Ukraine and instability along key shipping routes, he said.
“If the Strait of Hormuz is not going to open convincingly sometime soon, we may have some difficulties both in terms of crude oil, but especially on products such as diesel and jet fuel,” Birol said.
He said the coming weeks and months would be critical for maintaining a healthy balance between global oil supply and demand.
REUTERS
