Nigerian regulators and PwC are urging South African investors to take direct upstream stakes in Nigeria, a move designed to insulate Africa’s largest economies from intensifying global energy volatility.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has invited refiners and South African banks to the 2025/2026 Licensing Round to secure direct “feedstock-to-tank” supply chains.
PwC Africa Oil and Gas Leader Pedro Omontuemhen stated that South Africa must adopt the “IOC playbook,” securing Nigerian equity to bypass a global spot market currently rattled by Middle East tensions.
With Brent crude trading above $100 per barrel in April 2026, the push for regional integration aims to reduce Africa’s reliance on expensive, dollar-denominated fuel imports from Europe and the US.
South Africa’s Deputy Minister Thandi Moraka noted that Nigeria’s 650,000-barrel-per-day refining capacity serves as a “strategic buffer” for the continent against international shipping disruptions and price spikes.
The NUPRC is offering 50 blocks, emphasizing that refiner-ownership of upstream assets is the most viable long-term solution to the supply shortages that have historically plagued domestic production.
Beyond crude, PwC is advocating for dual listings on the Johannesburg and Lagos exchanges to deepen capital pools, citing the success of Seplat’s Nigeria-London listing.
Analysts suggest this “South-South” collaboration could redefine African trade under the AfCFTA, transforming Nigeria into a regional refining hub while leveraging South Africa’s superior financial and technological infrastructure.
As Nigeria’s output stabilizes at 1.48 million barrels per day, the NUPRC’s “use-it-or-lose-it” policy ensures that newly auctioned blocks will contribute immediately to regional energy security.
The strategy marks a pivot toward continental self-sufficiency, ensuring that African resources primarily fuel African industrialization rather than serving as passive exports for global markets.
