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Belgium has expressed concerns regarding the possible loss of a significant share of its petroleum product exports to Nigeria, as President Bola Tinubu increased efforts to draw in energy investors and enhance domestic refining capabilities in Abuja on Tuesday.
This development follows accusations from stakeholders at the eighth Nigeria International Energy Summit (NIES) in Abuja, who claimed that developed nations hinder oil and gas investment in Nigeria and other African nations, emphasizing the need for Africans to find internal solutions to avoid unutilized oil and gas reserves.
Represented by the Minister of State for Finance, Dr. Doris Uzoka-Anite, Tinubu stated that tax reforms in the oil sector and the streamlining of regulatory and executive actions have attracted investments into Nigeria, boosting oil production to around 1.8 million barrels per day (mbpd).
He urged investors to focus on oil exploration, essential minerals, hydrogen production, power generation, domestic gas usage, and oil refining.
Tinubu pointed out that the Presidential Executive Order on Oil and Gas Sector Reforms has simplified processes, expedited licensing rounds, and fostered local participation for content development.
Belgian Ambassador to Nigeria, Pieter Leenknegt, acknowledged that Belgium contributes 40 percent of Nigeria's European refined oil imports, highlighting that as Nigeria increases its refining capacity, this reliance is likely to decrease.
He mentioned that while Belgium supports this transition, it poses challenges to trade relations. Leenknegt also noted that relying solely on renewables for the industrialization of African economies might not be feasible, adding that “transition fuels like gas are crucial.”
During the summit, participants criticized developed nations for obstructing investments in Nigeria’s energy sector under the pretense of climate policies.
The ambassador referenced Namibia’s green hydrogen initiative, co-funded by Belgium, Denmark, and Germany, as an example of Europe’s ongoing commitment to supporting Africa’s energy development.
The Group Chief Executive Officer (GCEO) of Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, reiterated Nigeria’s position as Africa’s leading oil and gas producer and its increasing significance in the global energy landscape.
“Oil will remain a vital part of the global energy mix, accounting for over 39 percent of demand worldwide by 2025,” Kyari commented.
He mentioned that Nigeria is banking on tax reforms and investment incentives to further its energy agenda, asserting, “Investors now view Nigeria as a stable fiscal environment promising long-term profitability.”
Kyari also emphasized the importance of developing gas infrastructure for Nigeria’s goal of becoming a trillion-dollar economy, with NNPCL spearheading efforts to supply local industries and power plants.
Dr. Omar Ibrahim, Secretary-General of the African Petroleum Producers’ Organisation (APPO), emphasized that Africa must prioritize energy security and not depend solely on foreign funding.
“The African Energy Bank represents a significant change. Governments must safeguard investments in the energy sector. Developed nations extend subsidies for key industries; Africa must do likewise,” Ibrahim asserted.
Moreover, President and Chairman of the Board of Directors of the African Export–Import Bank, Benedict Oramah, highlighted that the bank has already allocated nearly $3 billion for energy projects in Nigeria and is dedicated to financing sustainable investments.
Senior Manager of Project and Asset-Based Finance at the bank, Ayoola Mubarak, reiterated that the institution remains committed to creating commercially viable deals that fit regulatory frameworks and economic contexts to establish a sustainable investment model capable of ensuring ongoing support for the energy sector.
At the summit, themed ‘Bridging Continents: Connecting Investors Worldwide with Africa’s Energy Potential,’ Haitham al-Ghais, Secretary General of the Organisation of Petroleum Exporting Countries (OPEC), urged Africa to secure its energy future to avoid falling behind in the global energy competition. “For 65 years, OPEC has provided stability, ensuring energy remains affordable and accessible. However, we are now at a critical juncture. A misguided narrative discouraging oil and gas investment has impeded Africa’s advancement,” he stated.
Al-Ghais highlighted the ongoing initiative by developed nations to phase out fossil fuels, stating that while this transition is unavoidable, it must be gradual and inclusive.
Special Advisor to the President on Energy, Olu Verheijen, revealed that Nigeria attracted over $1.2 billion in gas sector investments within a year, thanks to targeted reforms and a data-driven strategy for energy development. She pointed out that Nigeria's efforts to enhance the commercial viability of its non-associated gas reserves, which constitute nearly 75 percent of the remaining reserves, are proving effective.
In 2024 alone, Verheijen elaborated, over $700 million was invested in the gas sector, elevating portfolio values and returns by approximately 30 percent, alongside an additional $600 million partnership between Total and NNPCL.
“Investors are drawn to what is financially viable. We have cultivated investor-friendly solutions to ensure Nigeria remains appealing, whether to independent financiers or multinational corporations,” she concluded.
