Oil prices, yesterday, continued their downward trajectory as Brent dropped to about $68 per barrel, even as Africa is intensifying diplomatic efforts to secure investment and policy support from the United States amid growing concerns over the future of its energy sector.
This comes as the latest data from the U.S. Energy Information Administration revealed an unexpected 3.6 million-barrel increase in crude oil inventories, exacerbating an already fragile market reeling from OPEC+’s decision to begin unwinding production cuts in April.
In the early hours of yesterday Brent crude fell 2.13 per cent to $69.53 per barrel, while WTI dropped 2.64 per cent to $66.46, extending a three-day losing streak. At the time of filing this report, Brent had already dropped to $68.4 per barrel.
For African oil-producing countries, particularly Nigeria, Angola, Libya and Algeria, the drop and the uncertainty in investment climate present a severe economic challenge.
Nigeria, Africa’s largest oil-producer, had set its 2025 budget benchmark at $75 per barrel and a production target of 2.06 million barrels per day (mbpd).
However, with actual output hovering around 1.8mbpd and Brent crude now below $70 per barrel, revenue projections are looking increasingly unrealistic. The Nigerian government faces the prospect of widening fiscal deficits, heightened borrowing and deeper economic instability, if oil prices fail to recover.
The development will also further worsen the state of Excess Crude Account (ECA) and the relative stability of the foreign exchange market.
Already, African Energy Chamber (AEC) has enlisted Stryk Global Diplomacy (SGD) to push Africa’s energy agenda in Washington, D.C. The partnership is designed to strengthen Africa’s influence in U.S. policy circles, attract capital for oil and gas projects, and counter Western restrictions on fossil fuel financing.
African energy leaders argue that global efforts to phase out hydrocarbons, particularly Environment, Social and Governance (ESG) regulations, disproportionately disadvantage the continent.
The impact of ESG policies on African oil and gas development has been severe. European financial institutions have significantly curtailed lending for new fossil fuel projects, with at least 11 major banks withdrawing support.
While Africa responded with the African Energy Bank (AEB), which is expected to take off last January, the bank has yet to see the light of day.
The European Union (EU) has led calls for an end to public financing for fossil fuels, and environmental groups such as Greenpeace continue to pressure governments and private investors.
This has left many African nations struggling to raise the capital needed to develop oil fields, maintain production and expand gas infrastructure.
By engaging Washington, the continent hopes to tap into U.S. financial institutions and energy firms looking for opportunities beyond the Middle East and Latin America.
The U.S. remains one of the world’s top oil and gas producers, and despite a domestic focus on clean energy, its energy companies are well-positioned to invest in Africa.
There is already momentum in this direction. African national oil companies, independents and multinationals operating on the continent are preparing for new licensing rounds in 2025. Countries such as Senegal, Namibia and Cote d’Ivoire have attracted investors’ interest following major offshore discoveries, while traditional producers like Gabon, Equatorial Guinea and Ghana are seeking to sustain production despite shrinking financing options.
The AEC-SGD partnership will work to ensure that Africa’s case for continued oil and gas development is heard at the G20 energy dialogues and the African Energy Week (AEW) conference in Cape Town.
A key message from African leaders is that energy poverty remains a far greater crisis than emissions from Africa’s oil and gas sector.
Over 600 million Africans lack electricity, while 900 million still rely on biomass for cooking, leading to severe health and environmental consequences. Africa’s vast 620 trillion cubic feet of proven natural gas reserves offer a pathway to industrialisation, economic growth and cleaner energy transitions. Yet, financing constraints continue to hinder the development of major gas projects such as Mozambique’s Rovuma Basin, Senegal and Mauritania’s Greater Tortue Ahmeyim LNG, and Tanzania LNG.
Executive Chairman of AEC, NJ Ayuk, stressed the need for Africa to shape its own energy future rather than be dictated to by external forces.
Ayuk said: “The notion that producing energy in Africa will lead to a ‘carbon bomb’ is misleading and ignores the critical need for energy access across the continent. Energy poverty is one of Africa’s biggest threats, and we must work with partners who recognise that natural gas is part of the solution, not the problem.”
Founder of SGD and a well-known U.S. lobbyist, Robert Stryk, reinforced the message, arguing that Africa should not be vilified for its dependence on hydrocarbons.
Stryk said: “Africans need energy to tackle energy poverty and drive economic growth. They should be allowed to make their own choices. Our firm will work to bring Africa’s energy matters to the world’s most important decision-makers.”
