Deloitte forecasts robust growth for West Africa’s oil, gas market
West Africa’s oil and gas market is poised for robust growth, driven by sustained global energy demand and the region’s vast hydrocarbon reserves, according to the 2025 West Africa Oil and Gas Outlook released by Deloitte.
The report projects a Compound Annual Growth Rate (CAGR) of 6.5 per cent for the regional oil and gas market between 2025 and 2033, with an estimated market value of USD80 million.
Nigeria and Ghana together account for approximately 80 per cent of this total, with Nigeria contributing 60 per cent and Ghana 20 per cent. This underscores their pivotal role in shaping West Africa’s energy landscape.
Deloitte notes that the sector across sub-Saharan Africa is at a “decisive inflection point”, driven by the need to balance energy equity, security and sustainability amid global energy transition pressures.
“From Nigeria’s hydrocarbon-rich delta to Angola’s offshore blocks, and the enormous gas reserves in the East African Rift Valley, the continent is recalibrating its approach to energy equity, security and sustainability,” the report stated.
While Africa’s hydrocarbon potential remains significant, Deloitte emphasised that challenges such as access to finance, geopolitical risks and infrastructure constraints continue to shape operational realities for investors and producers alike.
In terms of crude oil output, Nigeria remains Africa’s top producer, recording an average of 1.5 million barrels per day (bpd) at the end of 2024. Angola follows closely with 1.4 million bpd. These figures, the report indicated, highlight the strategic relevance of West Africa to global energy supply chains.
“These volumes underscore the strategic relevance of the region to Africa’s energy outlook. However, they also mask deeper complexities facing operators and policymakers,” Deloitte added.
The report, titled ‘Shaping Opportunity from Complexity in West Africa’s Oil and Gas Market’, highlights the region’s growing attractiveness to investors, particularly in liquefied natural gas (LNG), offshore exploration and downstream infrastructure.
It further noted that countries such as Ghana, Côte d’Ivoire and Senegal are emerging as key new frontiers for oil and gas investment, thanks to recent discoveries and favourable regulatory reforms.
To sustain this growth trajectory, Deloitte concluded that regional collaboration, policy stability and technological innovation will be critical in unlocking West Africa’s full potential and ensuring long-term energy security for the continent.
