Nigeria Takes Lead As Mergers Reshape Africa’s Energy Landscape
By NINI NDUONOFIT-AKOH
NIGERIA has emerged as the epicentre of Africa’s fast-evolving oil and gas sector, as a surge in mergers and acquisitions (M&A) reshapes asset ownership, boosts indigenous participation, and attracts new investments across the continent.
According to the African Energy Chamber’s State of African Energy 2026 Outlook, upstream M&A activity in Africa is accelerating, driven by global portfolio restructuring and strategic divestments by international oil companies (IOCs). Nigeria tops the chart with major deals that have shifted control of key assets from global majors to local players.
Landmark transactions include ExxonMobil’s sale of MPNU to Seplat Energy, Eni’s transfer of its onshore arm to Oando Plc, TotalEnergies and Equinor’s divestment to Chappal Energies, and Shell’s sale of SPDC to Renaissance, a consortium of five Nigerian firms. These deals mark a decisive move toward energy self-determination and stronger indigenous control.
Analysts say the shift reflects IOCs’ focus on deep-water and gas projects, while local firms consolidate their grip on onshore and shallow-water operations. The Petroleum Industry Act (PIA) and improved fiscal policies have also spurred renewed investor confidence.
Across Africa, similar trends are unfolding, including Vitol’s $1.65 billion acquisition of Eni’s assets in Ivory Coast and Congo, and Shell’s $510 million purchase of TotalEnergies’ stake in Nigeria’s Bonga field. New licensing rounds in Algeria, Libya, and other countries are reigniting investor interest.
The African Energy Chamber forecasts more consolidation in 2026, particularly among mid-sized African independents seeking scale through mergers and stock-for-stock deals.
As Africa’s top oil producer, Nigeria is expected to dominate discussions at the upcoming African Energy Week 2026, where stakeholders will assess how the continent’s M&A boom is redefining its energy future.
