Nigeria Could Double Energy Investment in 5 Years, Says IEA Chief

Nigeria could double the energy investment it currently receives within five years, following its admission as an associate member of the International Energy Agency (IEA), the agency's Executive Director Fatih Birol said during a visit to Abuja on Thursday.

"My goal is, in a very short period of time, in five years, at least doubling the energy investments Nigeria is receiving today," Birol told Reuters, adding that Nigeria's IEA membership would help attract capital, deepen technical cooperation and give Africa's largest oil producer a stronger voice in global energy policy discussions. He said Nigeria needs substantial capital to unlock opportunities across oil, gas and renewable energy, particularly solar power.

Nigeria became an associate member of the Paris-based energy watchdog in July, after 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 covering cooperation on natural gas, electrification, clean cooking, energy efficiency and energy data development.

As part of that cooperation, Nigeria will work with the IEA to improve its energy data collection and reporting systems, an area investors and market participants have long said is lacking, particularly for statistics on oil production, exports and consumption.

Birol says trust, not resources, is the scarcest commodity

Birol said shifting global energy trade patterns, combined with Nigeria's resource base, could help draw 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, pointing to exports from the Dangote refinery, which processes about 700,000 barrels of crude a day, as having helped ease fuel-supply pressure in Europe in recent months.

Nigeria is aiming to nearly double oil production to 3 million barrels per day by 2030, and is relying on energy sector reforms, infrastructure upgrades and improved security to curb oil theft to help attract foreign capital after years of underinvestment.

Middle East tensions threaten global supply routes

Birol disclosed that geopolitical tensions and disruptions to major energy supply routes were reshaping global trade flows and creating risks for consumers, with countries reassessing their energy partnerships and supply chains following the disruptions caused by Russia's full-scale invasion of Ukraine and instability along key shipping routes.

"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 said.

Birol added that the coming weeks and months would be critical for maintaining a healthy balance between global oil supply and demand, a balance that could shape how quickly Nigeria's IEA membership translates into the investment gains he is targeting.