Economy
New Resource Finds, Technological Advances Boost Africa’s Oil & Gas Industry
Africa’s oil & gas industry poised for further growth in the wake of new resource finds, technological advances and improved governance – PwC Africa oil & gas review
The global energy market is in an exciting phase of transition and disruption. Breakthrough technologies are unlocking significant new reserves, processing, transportation and downstream uses that were previously unviable, unknown or inaccessible.
Decarbonisation driven by the environmental sustainability agenda is shifting the energy mix at an accelerating pace, which is particularly evident across North America, Asia and Europe. This seems likely to position gas ahead of coal by 2030 to become the world’s number two fuel.
Africa’s oil & gas industry holds the potential for further growth mainly driven by an increase in investor appetite and a rebound in prices. New oil & gas finds off the coast of Africa have led to an increase in investment in infrastructure, technological advances, updates in regulation and improved governance, as well as the development of new skills. These are some of the key highlights from PwC’s annual Africa oil & gas review 2019 released by PwC Africa today.
Andries Rossouw, PwC Africa Energy Utilities & Resources Leader, says:
“Renewed optimism has returned to Africa’s oil & gas industry on the back of a rebound in prices and increased investor interest.
“The African oil & gas industry has been through some difficult and challenging years in the wake of the oil price crash.
“However, the industry has restructured itself and is more competitively placed in terms of efficiency and operational performance.
“The outlook for the industry continues to improve with oil & gas companies targeting cautious growth in areas less vulnerable to external volatility while maintaining their cost and operational margins.”
PwC’s Africa oil & gas review, 2019 analyses what has happened in the last 12 months in the oil & gas industry within the major and emerging African markets
Globally, 2018 was a successful year in oil & gas exploration with discoveries almost doubling those made in 2017.
Not withstanding Africa’s endowment in vast natural resources, including substantial oil and gas reserves, West Africa was the only African discovery to make it onto the 2017 and 2018 top 10 lists for new discoveries.
One of the most dramatic finds in Africa over the past decade is Mozambique’s natural gas estimated at over 180 tcf, which has already unlocked the first three large-scale LNG projects.
These projects, together with project expansion phases and additional exploration have the potential to position Mozambique as the third largest LNG producer in the world after Qatar and Australia by 2030.
Hydrocarbon resources also provide growth opportunities in countries that can capitalise on the potential. Maximising the benefits from these endowments provides direct income to governments, employees, suppliers and shareholders of megaprojects.
Growth and development
Although Africa’s oil production increased slightly in 2018, the continent was unable to keep up with global output, resulting in a 0.1% drop in share.
Africa’s share of global oil reserves has declined by 1% from the prior year standing at 125.3 billion bbl, amounting to 7.2% of the world’s proven reserves.
At the end of 2018, Africa is reported to have 509.6 tcf of proven gas reserves, up 4.5% from the prior year, which amounts to 7.3% of global proven reserves.
Nearly 91% of African gas production continues to come from Algeria, Angola, Egypt, Libya and Nigeria, and saw an overall increase of 4.8% from last year.
An interest in Africa’s gas reserves has also led to a series of successful LNG projects resulting in a liquefaction capacity of 18% of the total global capacity.
Oil & gas discoveries
2018 was a successful year in oil & gas exploration with discoveries almost doubling those made in 2017. In both 2017 and 2018 the only top-10 major discoveries on the continent were made in West Africa.
This contrasts with previous years in which substantial resources were found across the African continent.
In line with the oil price crash of 2014 to 2016, capital expenditure spends on production in Africa showed a significant decline, which continued into 2018 with a total drop in capital expenditure spend of 43% for the period 2014-2018.
This could change significantly with final investment decisions made for LNG developments in Mozambique.
From 2020 capital expenditure spend is expected to increase at an annual compound growth rate (CAGR) of 4% to more than US$70bn in 2030.
The oil price
The oil price saw a notable increase throughout much of 2018, to a point where it hit a four-and-a-half year high in October 2018.
However, the fourth quarter saw the oil price slump by 42%. Recent attacks in Saudi Arabia and resultant oil price spike, demonstrated the potential price volatility.
Fortunately, the oil industry has remained optimistic, and African exploration spend is forecast to recover robustly over the medium term, most likely in anticipation of an upturn in the oil price.
Gas and LNG supply and demand
Globally, natural gas will continue to see growth and is expected to overtake coal by 2030 to become the world’s second leading fuel. Natural gas accounts for just under a quarter of global energy demand, of which 9.6% was supplied as LNG in 2018.
The number and type of LNG market participants has dramatically increased as lower prices make imports more affordable.
The increasing regulatory drive to decarbonise is also expected to reduce the share of coal in the global energy mix and drive demand for natural gas.
Africa’s utilisation of LNG production capacity is 61% (Globally it is 85%). Africa’s LNG exports were equal to 39.7 mtpa6 in 2018, mainly coming from Nigeria, Algeria, Angola and Egypt.
Nigeria’s oil & gas sector
Nigeria is one of the oldest oil-producing countries in Africa. Oil was first discovered in Nigeria in 1956 and production began in 1958.
The oil price boom of the 1970s spelled good fortune for the country transforming it from an agrarian economy to an oil-dependent economy.
Since then, the Nigerian petroleum industry has evolved and this evolution provides useful lessons for other countries with oil & gas to learn including: mid and downstream segments development, regulatory complexity and uncertainty and contractual frameworks.
Focus on Mozambique
The natural gas discoveries in Mozambique since 2010 have the potential to transform the country into one of the world’s largest LNG exporters.
However, the 2014–2015 slump in energy prices caused several energy giants to delay projects and this gave rise to concerns that Mozambique’s LNG developments could be held back.
LNG will drive growth in Mozambique’s economy. Maximising the benefits from LNG will provide direct income to the government, employees, suppliers and shareholders of the megaprojects.
Of equal if not higher importance, is the significant developmental potential through the associated infrastructure, industrialisation, socio-economic and capability uplift at country level.
However, expectations about the extent to which the oil & gas industry will contribute to the development of Mozambique’s citizens may be unrealistic and not consider the country’s growing revenue needs; the current low base from which the economy is developing; and that projects will overlap, creating pressure on current resources.
Looking to the future
The African oil & gas sector is moving from a cycle of stagnation in exploration, capital expenditure spend and production between 2014-2018 in the wake of the oil price crash, to a more dynamic growth phase.
During the downturn the industry restructured itself for improved efficiency and performance and is fitter for this new future.
Oil & gas companies are better placed now to take advantage of shifting geopolitics and trade patterns, new resource finds, a transitioning and decarbonising global energy mix, technological improvements, maturing regulatory environments and improved governance in some countries.
James Mackay, PwC Director Capital Projects & Infrastructure comments:
“It is critical, however, that the sector retains and builds on its strategic portfolio management, enterprise risk management, capital project delivery, capital sourcing and allocation discipline, market and customer insights and relationships and adopts new technologies and innovations to improve performance if the hard-fought wins in cost savings are to be retained.
“Progress in addressing corruption and improving corporate governance will also need to be urgently addressed.”
Against this backdrop, African NOCs and their partners, contractors and funders must chart a course through increasingly uncertain waters.
“The future for the African oil & gas industry is exciting as well as challenging and we can look forward to the growing participation of Africa as a global consumer and supplier of energy,” Mackay concludes.
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Tier-one Lender, Fidelity Bank Plc., has announced the resumption of international transactions on its Naira Debit Cards.
This recommencement gives customers the freedom to make seamless payments abroad, online, and at ATMs outside the country.
The Divisional Head of eBanking, Fidelity Bank, Ifeoma Onibuje, shed light on the development.
Onibuje said: “We are delighted to inform the public that Fidelity Naira Cards are now enabled for global use.
“This means that our travelling customers can now utilize their Naira Debit cards outside the country to shop, spend and withdraw internationally without hassles.”
“Consequently, our customers can now spend up to $1,000 quarterly for international POS and online transactions; and withdraw up to $500 quarterly on international ATMs.”
The announcement offers Fidelity Bank customers another way to complete international transactions, in addition to the Bank’s existing foreign currency debit and credit cards.
The bank stated that it further reinforces its commitment to delivering solutions that fit seamlessly into customers’ lifestyles.
With Fidelity Bank’s VISA and Mastercard Naira Debit Cards, Nigerians can now enjoy effortless global access.
Beyond payments, Fidelity VISA cardholders, one of the variants of the bank’s card offerings, also enjoy premium travel and lifestyle benefits.
The benefits range from airport lounge and spa access via the Visa Airport Companion App, to fast-track immigration lanes and 20% discounts on SIXT car rentals worldwide.
This move, the bank said, also reflects its commitment to provide secure, convenient, and reliable banking services that empower customers in Nigeria and beyond.
The bank noted that it has deliberately made the process of getting a Fidelity Naira card seamless.
It stressed that customers can easily apply for their Fidelity VISA or Mastercard Naira Debit card via the Fidelity Mobile App or simply visit the nearest Fidelity bank branch to request for one and they can start transacting globally with ease.
Ranked among the best banks in Nigeria, Fidelity Bank Plc is a full-fledged Commercial Deposit Money Bank serving over 9.1 million customers through digital banking channels, its 255 business offices in Nigeria and United Kingdom subsidiary, FidBank UK Limited.
The Bank is the recipient of multiple local and international Awards, including the 2024 Excellence in Digital Transformation & MSME Banking Award by BusinessDay Banks and Financial Institutions (BAFI) Awards; the 2024 Most Innovative Mobile Banking Application award for its Fidelity Mobile App by Global Business Outlook, and the 2024 Most Innovative Investment Banking Service Provider award by Global Brands Magazine.
Additionally, the Bank was recognized as the Best Bank for SMEs in Nigeria by the Euromoney Awards for Excellence and as the Export Financing Bank of the Year by the BusinessDay Banks and Financial Institutions (BAFI) Awards.
A Nigerian TikTok sensation known as “Geh Geh” has stunned the internet after pulling in over $30,000 from a single live session that attracted more than 177,000 viewers.
The young entertainer, who calls his platform the “University of Wisdom and Understanding,” has quickly built a cult following with his raw and unfiltered lectures about women, money, and survival in Nigeria.
During the live broadcast on Thursday, August 21, viewers showered him with virtual gifts that he later calculated to be worth over $30,000.
The milestone instantly pushed him into the spotlight as one of Nigeria’s fastest-rising online personalities.
Reacting in disbelief after the stream, Geh Geh said:
“More than 177,000 people watch my lectures today. Jesus! University of wisdom and understanding, the only university where once you graduate, woman go fear to ask you for money.”
Despite not having a formal education, Geh Geh proudly calls himself “the first illiterate to find a university in the history of Nigeria.” In a video after the viral live, he reminded fans of his humble background:
“I no be graduate too, but by the grace of God, I don find school. I be orphan, but now Nigerians don show me love.”
The TikTok star admitted he was overwhelmed by the generosity of his supporters.
“See gift I made over… more gift when they give me today is worth about $30,000. I no go take this love for granted, because I no really do anything for am.”
His rise has been hailed as proof of how social media is transforming lives in Nigeria. With no degree, no rich background, and no industry connection, Geh Geh has managed to build a fanbase that now calls themselves “students” of his unusual university.
Still, his controversial views on women and relationships continue to spark heated debates. While some dismiss his advice as reckless, others insist his boldness speaks directly to Nigeria’s frustrated youth.
Reflecting on his sudden fame, Geh Geh compared himself to great thinkers:
“If Nigeria be country wey value great people, by now them suppose dey compare people like me with Aristotle, Wole Soyinka, Einstein… but I thank God say people dey see my head and my own difference.”
From an orphan with no prospects to a viral star earning in dollars, Geh Geh’s story has become one of digital empowerment.
His journey shows how platforms like TikTok are creating new forms of fame, money, and influence for Nigerians especially those once written off by society.
The United Kingdom has once again cemented its position as Nigeria’s leading source of foreign capital, accounting for more than N5.5 trillion in inflows during the first quarter of 2025, according to the latest data from the National Bureau of Statistics (NBS).
Figures from the Capital Importation Report show that capital from the UK rose to $3.68bn (N5.52tn) in Q1 2025, representing 65.26% of Nigeria’s total $5.64bn inflows for the quarter.
This marked a 29.2% rise from the $2.85bn recorded in Q4 2024 and more than double the $1.81bn inflows seen in Q1 2024.
This underscores Britain’s dominance in Nigeria’s external financing profile and highlights the strong bilateral financial ties between both nations.
Breakdown of Q1 2025 Capital Inflows by Country
United Kingdom: $3.68bn (65.26%)
South Africa: $501.29m (8.88%)
Mauritius: $394.51m (6.99%)
United States: $368.92m (6.54%)
United Arab Emirates: $301.72m (5.35%)
Together, these top five countries accounted for over 92% of Nigeria’s capital inflows, reflecting both the concentration of Nigeria’s foreign investments and the risks of over-dependence on limited markets.
Other contributors included:
Cayman Islands: $114.76m (up sharply from $0.64m in Q4 2024)
Belgium: $70.54m
France: $47.33m
Netherlands: $42.68m (down significantly from $425.61m in Q4 2024)
Singapore: $36.79m
Overall, capital importation into Nigeria stood at $5.64bn in Q1 2025, up 10.9% from Q4 2024’s $5.09bn, and a remarkable 67.1% higher than the $3.38bn recorded in Q1 2024.
The NBS noted:
“Capital Importation during the reference period originated largely from the United Kingdom with $3,681.96m, showing 65.26 per cent of the total capital imported.”
A separate survey by Strategy Management Partners (UK) reveals that British companies are increasingly targeting Africa as a strategic growth frontier.
50% of UK firms with annual turnover above £20m are already operational in Africa and planning expansions.
Another 28% of executives said they are interested but remain cautious about entry strategies.
Africa’s appeal lies in its resource wealth and demographic potential:
30% of the world’s mineral reserves
8% of natural gas reserves
12% of oil reserves
65% of the world’s arable land
Projected to host 25% of the global workforce by 2035
Seven key sectors remain magnets for foreign capital inflows into Nigeria and Africa at large:
1. Technology
2. Oil & Gas
3. Power and Renewable Energy
4. Agriculture
5. Manufacturing
6. Infrastructure
7. Strategic Minerals
Analysts warn that while Nigeria’s reliance on UK-driven inflows reflects strong global confidence, the concentration of sources exposes the economy to external shocks if investor sentiment shifts in these countries.
Diversification of investment partnerships particularly within Asi
a, the Americas, and intra-African trade will be crucial to ensuring long-term resilience in capital inflows.
The United States government has said that Nigeria’s new N70,000 minimum wage has lost real value due to the sharp fall of the naira, leaving millions of workers trapped in poverty.
According to the 2024 Country Reports on Human Rights Practices, released by the U.S. Department of State’s Bureau of Democracy, Human Rights, and Labour, the wage translates to just $47.90 per month.
The report noted that currency devaluation and weak enforcement have undermined the wage increase.
The report also revealed that many states are yet to implement the new wage law. Several governors cited financial challenges as the main excuse.
Even where the law exists, compliance remains poor because of limited labor inspectors and weak oversight from authorities.
Wage Devaluation and Exclusion
The report highlighted that firms with fewer than 25 workers are excluded from the minimum wage law, leaving millions of employees without protection.
This also explained that about 70 to 80 percent of Nigeria’s workforce operates in the informal sector, where wage and labor rights are almost never enforced.
This means a majority of Nigerians continue to earn far below the national benchmark, despite the government’s approval of N70,000 as the new minimum wage.
The U.S. report stressed that the naira’s sharp decline, trading above N1,500 to the dollar, had worsened the wage erosion. This has left workers unable to afford basic needs, pushing many deeper into poverty.
Human Rights and Labor Challenges
The document pointed out that weak enforcement of labor laws contributes to worsening poverty levels in the country.
Workers in the informal sector, such as street vendors, artisans, and small traders, rarely benefit from labor protections.
The report also noted that Nigeria’s minimum wage is rarely sufficient to cover basic food, housing, and transport needs.
This has further exposed structural gaps in the government’s approach to economic reforms and poverty reduction.
Governors Push Investment Platform
Meanwhile, the Nigeria Governors’ Forum (NGF) has launched a new investment initiative called NGF Investopedia.
The platform seeks to attract capital flows into bankable projects across all 36 states, with the goal of tackling Nigeria’s annual $100 billion infrastructure financing deficit.
The launch event in Abuja gathered governors, international partners, and investors. The forum described the platform as a long-term strategy to unlock growth opportunities across states and strengthen Nigeria’s subnational economies.
NGF Chairman and Kwara State Governor, Abdulrahman AbdulRazaq, said Nigeria must urgently leverage its human and natural resources to address poverty and joblessness.
“Here is Africa’s largest economy, endowed with abundant human and natural resources,” he said, stressing that state governments must play a bigger role in attracting investments and supporting local industries.
A Widening Gap
The contrast between the U.S. report on wage decline and the governors’ push for investment highlights Nigeria’s economic paradox.
While authorities promote foreign capital inflow, millions of workers continue to survive on wages that have lost most of their value.
With inflation rising, food prices soaring, and the naira weakening, the gap between earnings and cost of living keeps widening.
Unless enforcement improves and the informal sector is integrated into wage protections, the N70,000 benchmark may remain symbolic rather than effective.
Fidelity Bank may have hit another milestone the Fidelity Naira Card is now accepted globally.
This was disclosed in a message sent to Diaspora Digital Media (DDM) via email on Monday.
According to the statement entitled “Your Fidelity Naira Card Now Works Globally; Shop, Pay and Withdraw with Ease!“, customers can buy favourite global brands online using their Fidelity Naira Card.
The band also stated that they can equally pay at POS terminals abroad and make cash withdrawals at ATMs as they travel.
The message reads:
“We’re excited to let you know that your Fidelity Naira Card is now enabled for global use — so you can shop, spend and withdraw internationally with confidence.
“Here’s what you now enjoy every quarter:
|
Channel |
Transaction Limit |
| ATM Withdrawal abroad | $500 |
| Online/Web & POS Payments | $ 1,000 |
“What does this mean for you?
- Shop your favourite global brands online
- Pay at POS terminals abroad with ease
- Withdraw cash at ATMs when you travel.”
The statement, however, noted that the $1,000 quarterly limit applies to all international transactions combined, including ATM withdrawals, online purchases, and POS payments.
The bank urged customers who may need assistance with setting card limits or activating their cards for global use, to contact the bank’s customers care “Centre Trueserve”, which is available round the clock, whether in Nigeria, or outside the country.
“Your world, your card — spend smart, spend globally with Fidelity,” the message concludes.
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