IEA says Nigeria’s energy investment could double in five years

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The Executive Director of the International Energy Agency, Faith Birol, says Nigeria’s investment in its energy sector could double within five years as an associate member.

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He told Reuters on Thursday in Abuja that Nigeria’s admission as an associate member of the Paris-based agency could attract foreign investment into the country.

Nigeria was admitted as the 14th associate member of the IEA in July after the US, Germany, Italy and other member states unanimously voted in its favour. With this, Nigeria became the first member of the Organisation of Petroleum Exporting Countries (OPEC) to join the IEA.

Mr Birol said this new arrangement would give Nigeria, Africa’s largest oil producer, a stronger voice in global energy policy conversations.

Nigeria hopes to double investment in its energy sector within five years, and the IEA would help achieve this goal, according to Mr Birol.

Meanwhile, IEA member states seek partners they can “trust” after supply disruptions from the wars in Iran and Ukraine.

The IEA chief said disruptions to major energy supply routes are reshaping global trade flows.

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He said, “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.”

He described Nigeria as a credible energy supplier and noted that exports from the Dangote refinery helped ease fuel-supply pressures in Europe in recent months.

The Dangote refinery processes about 700,000 barrels of crude a day.

He added that Nigeria’s new status, alongside global realities, could attract 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.

“My goal is, in a very short period of time, in five years, to at least double the energy investments ⁠Nigeria is receiving today,” he said.

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The IEA and Nigeria plan to sign a joint work programme during Mr Birol’s visit.

The programme outlines cooperation in areas including natural gas, electrification, clean cooking, energy efficiency, and energy data development.

Mr Birol further noted that Nigeria is also partnering with the IEA to improve its energy data collection and reporting systems.