By: Tunji Okunlola
Nigeria could see its energy investment double within the next five years, following the country’s admission as an associate member of the International Energy Agency (IEA), according to the agency’s Executive Director, Fatih Birol.
Birol said the new relationship with the Paris-based energy watchdog would help Nigeria draw fresh investment, deepen technical cooperation, and boost its standing in global energy policy discussions. He made the remarks in an interview with Reuters on Thursday during a visit to Abuja.
“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.
He noted that Nigeria needs significant capital to unlock opportunities across its oil, gas and renewable energy sectors, with particular emphasis on solar power. According to Birol, the country’s abundant energy resources, paired with ongoing shifts in global energy trade, could position Nigeria as an appealing partner for governments and private investors in search of dependable energy relationships.
“The most scarce commodity is not oil, not gas, not uranium, not lithium. It is trust. Countries are looking for partners they can rely on,” he said.
Birol described Nigeria as a credible energy supplier, pointing to the Dangote Petroleum Refinery’s role in easing fuel supply pressures in Europe in recent months through exports of refined petroleum products. The refinery, which has a processing capacity of roughly 700,000 barrels of crude oil per day, has steadily increased its supply to international markets.
Nigeria was admitted as an associate member of the IEA in July, after its application received unanimous backing from member countries, including the United States, Germany, Italy and Japan. The IEA and the Federal Government are expected to sign a joint work programme in Abuja, covering cooperation in areas such as natural gas, electrification, clean cooking, energy efficiency and energy data development.
The partnership is also expected to help strengthen Nigeria’s energy data collection and reporting systems. This is an area investors and market participants have long flagged as a weak point, particularly regarding oil production, exports and consumption figures.
Separately, Nigeria is targeting crude oil production of three million barrels per day by 2030, nearly double its current output. The government is counting on sector reforms, infrastructure upgrades and improved security measures to curb oil theft, attract foreign investment and reverse years of underinvestment.
Birol said shifting dynamics in the global energy landscape have made reliable partnerships increasingly critical, as countries reassess their supply chains in the wake of disruptions tied to Russia’s invasion of Ukraine and instability along key energy shipping routes.
He also cautioned that prolonged disruption to the Strait of Hormuz could pose supply challenges, particularly for refined petroleum products. “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 crucial for maintaining a healthy balance between global oil supply and demand.