Africa’s oil and gas sector, though rich in natural reserves, continues to lose billions in potential revenue due to chronic infrastructure gaps, according to Deloitte’s latest West Africa Oil and Gas Outlook 2025.

The report finds that across much of the continent, the lack of pipelines, refineries, storage facilities, and transport networks continue to hinder the monetisation of Africa’s abundant oil and gas resources.

This, Deloitte warns, is fundamentally altering the investment equation, pushing up costs, extending project timelines, and discouraging large-scale commitments.

“Despite having significant reserves, many parts of Africa lack the basic infrastructure required to monetise those resources effectively. Costs increase and timelines extend when key support systems such as drilling rigs, pipelines, marine vessels, and storage facilities are unreliable or unavailable,” the report stated.

In Angola, where offshore production dominates, the government has begun tackling logistical bottlenecks that have long weighed on project economics.

The report also highlights major new investments in Liquefied Natural Gas (LNG) production, including the Quiluma and Maboqueiro fields, which are expected to help monetise the country’s non-associated gas reserves and boost export capacity.

In Nigeria, Africa’s top oil producer, infrastructure challenges remain widespread across onshore, shallow-water, and deepwater terrains.

While offshore projects tend to rely on Floating Production, Storage, and Offloading (FPSO) vessels, reducing dependence on pipelines, onshore assets face greater constraints from limited road and pipeline networks, which lead to production delays and higher operating costs.

Deloitte’s report suggested that these gaps are a critical barrier to Africa’s competitiveness in the global energy market.

Without coordinated investment in midstream and downstream infrastructure, the continent risks missing the benefits of rising global demand for oil and gas.

“Infrastructure is the backbone of the energy value chain. To unlock Africa’s full oil and gas potential, governments and investors must prioritise long-term infrastructure development alongside exploration and production,” the report concluded.

As countries like Ghana, Nigeria, and Angola pursue new energy reforms, Deloitte emphasised that success will depend not only on regulatory clarity but also on the physical systems that connect Africa’s resources to markets, the pipelines, refineries, and ports that turn potential into prosperity.

SSD/AE

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