Economy
Outlook for Africa’s Oil & Gas Sector Positive—Report
By Dipo Olowookere
A new report by PwC has disclosed that the outlook for Africa’s oil & gas industry remains positive amid difficult operating and economic headwinds.
Tough economic and external conditions have placed pressure on oil & gas companies to be more cost-effective and efficient. As a result, companies have adopted to a low-cost environment, which promises to be even more beneficial given the current recovering oil price.
In the PwC’s annual Africa Oil & Gas Review released at the 25th Africa Oil Week conference, 2018 held in Cape Town, PwC Africa Oil & Gas Advisory Leader, Mr Chris Bredenhann, said, “Africa’s oil & gas companies have weathered the downturns and capitalised on the upswings focusing their efforts on new ways of working, reducing costs and utilising new technology.”
Companies have taken to restructuring their portfolios with a focus on established regions, less exploration, higher value plays with low break-even-cost, and projects with shorter lead times and lower risk. The industry has also renewed its focus on delivering projects on-time and on-budget.
As the oil price is steadily rising towards pre-collapse levels, the outlook for the industry is hopeful. “It is, however, important for companies to avoid falling into the cost inflation trap that could eat into the profitability gains that should follow from the rising oil price. Keeping up capital discipline and further improving productivity will yield sustained results for the industry,” Bredenhann adds.
Despite positive developments, the oil & gas industry still faces numerous and persistent challenges around talent shortages, regulatory uncertainty, political instability, corruption and fraud, and a lack of infrastructure.
Notwithstanding the challenges, Africa does offer plenty of opportunities in the form of unexplored hydrocarbon demand fuelled by population growth, urbanisation and the emergence of a growing middle class.
PwC’s Africa Oil & Gas Review, 2018 analyses what has happened in the last 12 months in the oil & gas industry within the major and emerging markets. This edition focuses on the expert opinions of a panel of industry players from across the value chain who share their views of oil & gas in Africa.
At the end of 2017, Africa is reported to have 487.8 tcf of proven gas reserves, 7.1% of global proven reserves, only marginal changes to the prior year. Africa’s share of global oil production has slightly increased by 0. 3% since last year to 8.7% standing at 8.1 million bbl/d. The main contributors continue to be Nigeria, Angola, Algeria and Egypt. Libya also increased its production by 102.9% in 2017, placing it as the fourth-largest oil producer in Africa with an 11% share moving Egypt into fifth position.
Regulatory developments in Africa
Regulatory uncertainty continues to be a major barrier to the development of the oil & gas industry in Africa. Overall, there are some positive developments that demonstrate that governments are reacting to the new environment. Despite some notable improvements around regulation, there is still a high level of uncertainty in a number of jurisdictions, the report said.
In South Africa, the proposed Amendment Bill to the Mineral and Petroleum Resources Development Act (MPRDA) may be withdrawn, and there are plans to split oil & gas from mining formulating separate legislation, it added.
Growth and development
The report stated that the outlook for the oil & gas industry is looking more optimistic with the Brent oil price having broken through the $80 mark at the time of compiling our report. Although there has been a significant increase in the number and size of final investment decisions (FIDs) in 2018, the industry is not what it was. New finds are much smaller and leaner than they were in prior years. Deepwater oil has been given preference over gas, and oil fields offering the highest rates of return are attracting investment. There is also a preference for brownfield over greenfield developments.
The current oil price recovery reflects a tight supply and demand balance, as well as an indication that we are heading towards a potential global supply crunch in the early 2020s. Exploration spend in Africa and globally is starting to pick up as well. It is safe to assume that this trend will continue if the current higher price environment is sustained.
Digital disruption in Africa
There have been a number of developments in digital transformation in the oil & gas industry, not only globally, but also in Africa. A number of new technologies have been deployed by the industry across the value chain. Some examples include: the use of drones to inspect remote facilities thereby reducing safety and health risks; the use of robots to undertake monitoring and safety checks, which also reduces the safety risks for human operators; and the use of virtual reality to simulate the drilling of wells remarkably reducing drilling costs. Digital disruption is here to stay, and African companies must embrace this to reap the rewards.
Looking to the future
Africa is the world’s fastest economic region with a growing population that is becoming more urbanised. According to PwC’s Strategy& estimates, Africa’s total energy demand is forecast to increase by 60% to 28 000 trillion btu by 2030.
Based on different potential trajectories for economic development, energy access policy and climate mitigation strategies, researchers have put forward various alternative scenarios for energy production and consumption on the continent in the years ahead.
Hydrocarbons are expected to continue to play a major role in the energy mix that will satisfy Africa’s growing energy needs. Major gas resources on the continent including Mozambique, Nigeria, Angola, Tanzania, Senegal and Mauritania, could augment the key position of gas as an energy source for Africans. In the low-carbon context, gas also plays the role of a transition fuel before a wider switch to renewables, a development which is likely to take longer in Africa than on other continents.
The increase in population and the demand for freight transport will also see an increased demand for liquid fuels. Many African countries are ‘thinking refineries’ at various scales. Countries that are considering new refineries or upgrades include Angola, Equatorial Guinea, Uganda, Nigeria, Republic of Congo, Ghana, São Tomé & Príncipe, and Zambia. Given projected population growth and refined fuels consumption, an estimated additional 3.4 bbl/d of refined fuels will be needed to meet Africa’s needs by 2030.
The role of National Oil Companies (NOCs)
The role that NOCs play as operators and custodians of the orderly development of the hydrocarbon industry in their respective countries cannot be underestimated. Almost 30 of Africa’s NOCs are involved at various points of the value chain and at different levels of maturity.
The PwC analysis delves deeper into the NOC landscape to provide a perspective on the future that NOCs could face.
“We have identified four potential scenarios along two axes: the level of regulatory stability and the level of diversification within a country’s economy,” it said.
These scenarios depict a number of possible future pathways and provide industry players with some options with regard to how they might respond to these potential outcomes and their impact on operations.
NOCs should consider these scenarios to enable them to design strategies that avoid the pitfalls identified.
The African oil & gas industry has been through some difficult years in the wake of the oil price crash. However, the industry has restructured itself and is more competitively placed in terms of operational performance, the report stated.
“It is critical that the sector retains its capital discipline and adopts digital technologies if the hard-earned wins in cost savings are to be retained. Progress in addressing corruption and improving corporate governance will also need to be maintained. Moreover, in the longer term, the energy transition will continue to impact the sector’s dynamics with implications for oil demand,” Bredenhann concludes.
By Adedapo Adesanya
The Minister of State for Petroleum Resources (Oil), Mr Heineken Lokpobiri, says Nigeria has continued to maintain crude oil production within its Organisation of the Petroleum Exporting Countries (OPEC) quota while simultaneously expanding its production capacity.
Mr Lokpobiri disclosed this after participating as head of the Nigerian delegation at the 41st OPEC and non-OPEC Ministerial Meeting, the 66th Joint Ministerial Monitoring Committee (JMMC) meeting, and the 193rd OPEC Conference.
According to the minister, participating countries reaffirmed existing crude oil production levels under the Declaration of Cooperation (DoC) framework, which will remain in force until December 31, 2026, as agreed at the 38th OPEC and non-OPEC Ministerial Meeting.
According to a statement on his official X handle, the meetings focused on sustaining market stability, transparency and long-term growth in the global energy industry.
“During these engagements, we reaffirmed the overall crude oil production levels for OPEC and non-OPEC Participating Countries under the Declaration of Cooperation (DoC), as agreed at the 38th OPEC and non-OPEC Ministerial Meeting, with the framework remaining in place until 31 December 2026,” Mr Lokpobiri stated.
The minister noted that member countries also reviewed progress on the Maximum Sustainable Capacity (MSC) assessment, which will serve as the benchmark for determining future production baselines from 2027.
“We also noted the importance of completing the Maximum Sustainable Capacity (MSC) assessment for all DoC countries, which will serve as the reference point for determining production baselines from 2027,” he said.
Mr Lokpobiri explained that the discussions underscored the collective commitment of oil-producing nations to maintaining a balanced market while ensuring sustainable long-term investments in the energy sector.
“These deliberations reflect our shared commitment to ensuring market stability, transparency, and long-term sustainability within the global energy sector,” he added.
For Nigeria, however, the minister said the more significant development was the country’s ability to comply with its OPEC obligations while strengthening production capabilities through ongoing reforms and investment inflows.
“For Nigeria, it is particularly noteworthy that we have consistently maintained production within our OPEC quota while simultaneously strengthening our capacity to produce more,” he stated.
He said the strategy places Nigeria in a stronger position to respond to future increases in demand without compromising market stability or national economic objectives.
“This balanced approach positions us to respond effectively to future opportunities while safeguarding the best economic interests of our people and supporting national development objectives,” Mr Lokpobiri said.
Nigeria’s crypto regulatory environment keeps shifting. Traders looking for the best crypto derivatives exchange in Nigeria are still figuring out how to navigate evolving frameworks while accessing global derivatives platforms — and the choice comes down to a handful of practical concerns: how painful is onboarding, what contracts are available, how high does leverage go, what do fees actually look like at your volume tier, and can you practice before putting real money at risk?
Choosing a Crypto Derivatives Exchange in Nigeria
A crypto derivatives exchange in Nigeria gives traders access to perpetual futures — instruments that let you speculate on price movements with leverage without holding the underlying asset. Perpetual futures don’t expire and rely on funding rate mechanisms to keep prices anchored to spot. Margin can be denominated in USDT, USDC, or the base coin.
Several factors carry extra weight for traders based in Nigeria. KYC processes can drag on or hit dead ends depending on your region, so low-barrier onboarding matters a lot. Fiat on-ramp variety, competitive fees, demo environments for learning leverage mechanics, and transparent reserve data — these are what separate serious platforms from thin wrappers. BYDFi Nigeria— the regional arm of a global exchange founded in 2020 that has been operating for over 6 years — addresses several of these needs in ways worth examining.
Six Years Running, Plus a Premier League Deal
The exchange launched in 2020 and now serves more than 1,000,000 registered users across 190+ countries and regions. Six years of continuous operation gives it a track record that newer platforms simply can’t replicate.
One credibility signal that lands particularly well in Nigeria: BYDFi became the Official Crypto Exchange Partner of Premier League club Newcastle United through a multi-year deal announced in August 2025. The Premier League has enormous Nigerian viewership, so the partnership signals brand visibility and commercial commitment. The platform is registered as a Money Services Business with FinCEN in the U.S. and holds membership in South Korea’s CODE VASP Alliance.
How Nigeria’s Regulatory Reality Shapes Platform Choice
Banking restrictions and verification bottlenecks have historically been the biggest headache for Nigerian crypto traders. For anyone evaluating a crypto derivatives exchange in Nigeria, the onboarding experience matters enormously. The exchange’s approach here is notable: users can sign up with just an email address and start trading without immediate identity verification, subject to tier-based limits.
That low-friction entry is a genuine practical edge. Optional KYC unlocks higher withdrawal limits and features like P2P trading, so anyone planning to move significant capital can verify at their own pace.
Perpetual Futures, Copy Trading, and Leverage Tools
Nigeria’s derivatives trading community has grown fast, fueled by traders who want leveraged exposure to BTC, ETH, and altcoins without the capital demands of spot accumulation. Contract infrastructure matters enormously here.
In December 2024, the platform upgraded its perpetuals system with three features experienced derivatives traders will recognise as significant: opening new positions without unrealized profits, bi-directional long/short hedging, and shared funds in full-margin mode to reduce liquidation risk. The hedging capability — holding simultaneous long and short positions on the same contract — is a tool commonly used during volatile sessions to manage directional exposure without closing positions.
Fees sit at maker 0.02% / taker 0.06% at the base VIP 0 tier. A 7-tier VIP program (VIP 0–6) offers up to 60% futures fee discount based on 30-day trading volume or asset balance.
| Feature | Details |
| Contract types | USDT-M, USDC-M, COIN-M perpetual futures |
| Leverage range | 1x – 200x |
| Base fees (VIP 0) | Maker 0.02% / Taker 0.06% |
| Max fee discount | Up to 60% (VIP 6) |
| Hedging | Bi-directional long/short on same contract |
| Copy Trading | Live since Jan 2025; starts at $10 |
Copy Trading went live in January 2025, followed by Perpetual Smart Copy Trading in August 2025. Users can automatically follow professional traders with proportional order sizing and isolated positions. Entry starts at just $10, with flexible margin options and multi-asset contract support. On the automation side, the platform offers four trading bots — Spot DCA, Spot Grid, Futures Grid, and Spot Martingale — plus a Bot Marketplace for community-created strategies.
Demo Trading: Learning Leverage at Zero Cost
Probably the most underappreciated feature for anyone entering the derivatives space. Setting up BYDFi’s demo trading account takes under two minutes. It comes preloaded with 50,000 USDT and mirrors real market conditions, supporting both USDT-M and COIN-M perpetual contracts.
For Nigerian traders new to futures, it’s a practical way to understand how margin calls and liquidation actually work before converting naira into risk capital. Not a luxury — a necessity. Any crypto derivatives exchange in Nigeria worth considering should offer this kind of risk-free practice environment.
What to Watch Going Forward
Nigeria’s crypto regulatory picture is still developing, and how global exchanges adapt to local compliance requirements will determine which platforms remain accessible. The tiered access model works today, but the broader industry trajectory points toward tighter verification standards.
The more concrete metric to track: whether the platform keeps expanding its contract types and risk-management tools.
By Dipo Olowookere
Renewed buying interest raised the Nigerian Exchange (NGX) Limited by 0.33 per cent on Monday, with gains recorded in almost all the major sectors of the bourse at the close of transactions.
According to data harvested by Business Post, the insurance counter expanded by 0.62 per cent, the banking index grew by 0.59 per cent, the energy sector appreciated by 0.40 per cent, and the consumer goods space improved by 0.10 per cent, while the industrial goods segment closed flat.
When the closing gong was struck by 4 pm to signify the close of business on Customs Street, the All-Share Index (ASI) was up by 1,113.76 points to 243,707.07 points from 242,593.31 points, and the market capitalisation chalked up N714 billion to close at N156.308 trillion compared with the previous session’s N155.594 trillion.
Interest in Nigerian stocks yesterday resulted in a rise in the activity level, with the trading volume soaring by 17.86 per cent to 717.2 million units from 608.5 million units. The trading value advanced by 77.19 per cent to N56.7 billion from N32.0 billion, and the number of deals surged by 36.22 per cent to 73,321 deals from 53,826 deals.
FCMB was the busiest stock during the trading day, with a turnover of 152.3 million units worth N1.8 billion, Premier Paints exchanged 61.0 million units valued at N135.3 million, Dangote Cement traded 34.7 million units for N29.7 billion, The Initiates sold 32.8 million units worth N1.0 billion, and Jaiz Bank transacted 32.6 million units valued at N293.3 million.
Yesterday, the market breadth index was positive after the exchange closed with 37 price gainers and 28 price losers, representing strong investor sentiment.
International Energy Insurance gained 9.92 per cent to settle at N7.98, the Initiates added 9.91 per cent to its share price to quote at N32.15, ABC Transport garnered 9.68 per cent to trade at N6.80, Abbey Mortgage Bank grew by 9.63 per cent to close at N10.25, and Linkage Assurance soared by 9.36 per cent to N1.87.
On the flip side, Fidson Healthcare gave up 10.00 per cent to finish at N122.85, Academy Press crashed by 9.70 per cent to N7.45, RT Briscoe depreciated by 9.43 per cent to N13.45, SUNU Assurances tumbled by 9.37 per cent to N4.06, and Learn Africa decreased by 8.70 per cent to N10.50.
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