Africa Countries Argue Oil Key in Solving Energy Challenges

By Herbert Ssempogo

When African oil-producing countries converged for the inaugural Sub-Saharan Africa Petroleum Exhibition and Conference (SAIPEC) nine years ago, there were arguably no headwinds.

The goal then, as it still is, was to showcase investment opportunities in the continent’s oil and gas resources, estimated to be well over 125 billion barrels of crude oil, according to Statista. The typical continent’s challenges notwithstanding, the annual conferences in Lagos, Nigeria continued, with the focus on exploiting oil and gas to turn the countries’ fortunes.

However, the clouds signaling an imminent storm couldn’t have gathered faster! Whilst countries like Uganda prepared for production, activism emerged, surged and continues to-date, albeit seemingly with reduced zeal. Almost in concert, is the energy transition, a buzz word for the desired switch from fossil fuels to energy sources deemed to have less environmental impact.

As the 9th SAIPEC themed Harnessing a Sustainable African Energy Industry Through Partnerships converged from February 10th-13th, 2025 in Nigeria, Africa’s energy challenges were not lost on the officials and authorities at the convention. Also not lost is the grim reality: the International Energy Agency’s African Energy Outlook reveals that 600 million people, or 43% of the total African population, lack access to electricity, with the majority residing in Sub-Saharan Africa. Additionally, 970 million Africans lack access to clean cooking facilities. Wood fuel - charcoal and firewood - remain an energy source.

Rallying participants in opening remarks, the Nigeria’s Minister of State for Petroleum Resources, Heineken Lokpobiri, decried the developed world’s rather selfish stance in the call for energy transition. The widespread energy poverty in Africa must change, he stressed.

Moreover, the developed world’s $100bn pledge to support reduction of emissions and facilitating adaptation to climate change in developing countries, is yet to be fulfilled. Furthermore, the Russian-Ukraine war and unfavourable weather forced several countries in the developed world to issue new oil and gas exploration licences in the North Sea, for example! In Europe, coal-fired power plants, which had been idle for years, were reactivated!

“Africa doesn’t need handouts. What Africa needs is partnerships,” he told participants, adding, “The time has come for Africa to address our local content challenges, so that we manage the energy needs. The solution to our energy problems begins with developing local content.”

“We want sustainable investments, not promises,” Lokpobiri stated. Evidently, the industry mantra drill, baby, drill resonates well with Africa.

Lokpobiri cited the Africa Energy Bank (AEB), expected to start operations by March 2025, as one of the solutions. It will be headquartered in Nigeria, where final touches on the head office are said to be ongoing, Lokpobiri disclosed.

AEB is a joint initiative of the African Petroleum Producers Organisation (APPO) and the African Export-Import Bank (Afreximbank), with planned participation from APPO, national oil companies, and African investors as shareholders.

AEB’s initial capital is about $50bn, potentially growing to $120bn in four to five years, according to Lokpobiri. This money, to be pooled by Africa’s oil-producing countries, will support the continent’s oil and gas investments, considering the flip-flopping of the developed world and its would-be lenders.

“The time has come for African nations to come together to find solutions to the energy problem. I urge all African countries to invest in it,” he urged.

Each of the participating countries showcased oil and gas resources and wooed investors. This year’s SAIPEC had more countries compared to yesteryears’. Uganda National Oil Company (UNOC) CEO, Proscovia Nabbanja, focused on the oil gas projects-Tilenga, Kingfisher, EACOP, and the refinery, among others. Key was Kasuruban, a UNOC-managed oil and gas exploration block astride Hoima, Masindi and Buliisa. Alluding to the conference theme, UNOC, according to Nabbanja, works with joint venture partners to ensure project success. UNOC was a Gold and National Sponsor for the conference.

Nabbanja, in a repeat of a similar feat in 2023, bagged the National Oil Company Executive of The Year Award. It was in recognition of her role at UNOC’s helm. END   

The writer is the Senior Corporate Relations Officer, Uganda National Oil Company