Nigeria has been formally admitted as an Association country to the International Energy Agency, following a decision by the IEA Governing Board in June. The country joins South Africa, Kenya, and Senegal as sub-Saharan African members of the organization. IEA Executive Director Fatih Birol visited Nigeria in September to meet with Vice President Kashim Shettima and Minister of State for Petroleum Resources Ekperikpe Ekpo to discuss the partnership and Nigeria’s energy priorities.
The IEA’s expansion to include Nigeria reflects its strategy to deepen engagement with major emerging and developing economies. Nigeria’s membership means the IEA now represents over 80 percent of global energy demand. The organization cited Nigeria’s position as Africa’s most populous country and one of its largest economies, alongside its substantial oil and natural gas production, as reasons for the association. A Joint Work Programme has been established to guide cooperation in areas including energy security, investment, data collection, efficiency measures, and clean cooking solutions.
Nigeria’s oil sector has shown significant momentum recently. In June, crude oil production reached 1.56 million barrels per day, the highest monthly average since April 2020. Total crude oil and condensate production rose to 1.74 million barrels per day, marking the fourth consecutive month of increases. The Nigerian Upstream Petroleum Regulatory Commission attributed the gains to stable operations and the absence of major pipeline disruptions. Production continued to rise in August, with officials crediting an intensified crackdown on oil theft and sabotage in the Niger Delta region.
Beyond fossil fuels, Nigeria is pursuing renewable energy development as part of its broader energy strategy. The country committed to carbon neutrality by 2060 through its Energy Transition Plan announced at the 2021 COP26 climate summit. A September government pledge of $5 million aims to support renewable energy development, while projections indicate Nigeria will install 1.7 gigawatts of solar capacity this year. The shift to renewable energy is projected to generate nearly $686.8 billion in fuel cost savings by 2060, contingent on developing 277 gigawatts of installed capacity and over 104,000 mini-grids by 2030.
Additionally, businessman Aliko Dangote announced plans to list his Nigerian refinery through what would be Africa’s largest initial public offering, with expected valuation near $48.8 billion if fully subscribed. These developments reflect Nigeria’s multifaceted approach to establishing itself as a major energy hub in Africa through both expanded oil production and renewable energy infrastructure.
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