IEA Targets Doubling Nigeria’s Energy Investment to Unlock Oil, Gas, Solar

• IEA chief Fatih Birol says Nigeria could double energy investment within five years as the country seeks more capital for oil, gas and renewable energy.

• Nigeria’s new IEA associate membership is expected to deepen technical cooperation, improve energy data and strengthen investor confidence.

• Birol warns prolonged Strait of Hormuz disruption could create supply shortages, particularly for diesel and jet fuel.

September 04, () — Nigeria’s energy investment could double within the next five years following the country’s admission as an associate member of the International Energy Agency, IEA Executive Director Fatih Birol has said.

Birol, who spoke to Reuters during a visit to Abuja on Thursday, said the membership would help Nigeria attract investment, deepen technical cooperation and strengthen its influence in global energy policy.

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

Nigeria seeks fresh energy capital

Birol said Nigeria needed substantial investment to unlock opportunities across oil, gas and renewable energy, particularly solar power.

He said the country’s large energy resource base, combined with changing global energy trade patterns, could position Nigeria to attract 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. Countries are looking for partners they can rely on,” Birol said.

He described Nigeria as a credible energy supplier and said exports from the Dangote Petroleum Refinery had helped ease fuel supply pressures in Europe in recent months.

The refinery, with a crude processing capacity of about 700,000 barrels per day, has increasingly supplied refined petroleum products to international markets.

Nigeria became an associate member of the IEA in July after member countries, including the United States, Germany, Italy and Japan, unanimously approved its application.

IEA to strengthen energy data

The IEA and Federal Government are expected to sign a joint work programme covering natural gas, electrification, clean cooking, energy efficiency and energy data development.

Improving energy data will be particularly important for investors and market participants, who have long raised concerns about the quality and consistency of Nigerian data on oil production, exports and consumption.

The partnership is also expected to support Nigeria’s efforts to attract investment and improve policy planning across the energy sector.

Nigeria is targeting crude oil production of three million barrels per day by 2030, almost double its current output.

The government is relying on sector reforms, infrastructure upgrades and improved security to curb oil theft, raise production and attract foreign capital after years of underinvestment.

Hormuz disruption threatens supply

Birol said the changing global energy landscape had made reliable energy partnerships increasingly important as countries reassess supply chains following disruptions linked to Russia’s invasion of Ukraine and instability along major energy shipping routes.

He warned that prolonged disruption to the Strait of Hormuz could create 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 critical for maintaining a healthy balance between global oil supply and demand.

For Nigeria, the IEA partnership comes at a time when the country is seeking to raise oil production, expand gas development and accelerate renewable energy investment, while positioning itself as a more reliable destination for global energy capital.