Local contribution to crude output jumps over 100% in a decade
8 of top 10 African indigenous producers now Nigerian
Report says local operators face mounting financing hurdles
Emmanuel Addeh in Abuja
A new report by energy research and consultancy firm, Wood Mackenzie, has revealed that Nigerian oil and gas companies now dominate Africa’s independent upstream landscape, accounting for about 75 per cent of the continent’s indigenous producer peer group value, amid a rapid expansion of local participation in the country’s oil industry.
The report, titled: “Nigeria’s Oil and Gas Independents Come of Age”, noted that eight of Africa’s top 10 indigenous oil producers are now Nigerian firms, led by Renaissance Africa Energy and Seplat Energy.
Aside from Renaissance and Seplat, it listed other Nigerian oil companies making waves on the top 10 as: Aradel Holdings; ND Western; Vaaris Resources; First E&P; Oando and Famfa Oil. Outside Nigeria, only Cheiron (Egypt) and Etu Energies (Angola) were mentioned in the list of top 10 in Africa.
According to the report authored by Wood Mackenzie Chairman and Chief Analyst, Simon Flowers, and Vice Chairman for Europe, Middle East and Africa, Gavin Thompson, indigenous companies have become central to efforts to revive Nigeria’s struggling upstream sector after years of declining oil production.
The consultancy firm stated that Nigerian independents now contribute 27 per cent of the country’s overall oil production, compared to just 12 per cent a decade ago, showing over 100 per cent growth and reflecting the growing influence of local operators, following the divestment of onshore and shallow-water assets by international oil companies.
Wood Mackenzie described the rise of Nigerian independents as a product of “the right place and right time,” explaining that ambitious indigenous firms capitalised on the exit of international majors from non-core assets, while favourable local content policies and a strong domestic talent base also accelerated growth.
“Consequently, Nigeria’s independents now make up eight of the top 10 indigenous African producers, with Renaissance Africa Energy and Seplat Energy at the top of the pile. With a combined value of $12 billion, Nigerian companies represent around 75 per cent of the African independents peer group value,” the report stated.
It added that with more than 100 indigenous upstream companies now active in the country, Nigeria possesses Africa’s most diverse oil and gas corporate landscape.
The report stressed that local companies have become critical to Nigeria’s ambition of raising crude production to 3 million barrels per day by 2030, especially as national liquids production has fallen from over 2 million barrels daily a decade ago to around 1.6 million barrels per day currently.
According to the assessment, Nigerian operators have leveraged more flexible operating models, higher appetite for risk and closer relationships with government and the Nigerian National Petroleum Company Limited (NNPC) to strengthen their foothold in the sector.
Wood Mackenzie noted that indigenous operators are also driving increased activity in marginal fields and post-acquisition developments following the transfer of assets from multinational firms.
The consultancy disclosed that major Nigerian independents, including Renaissance, SEPLAT and the Oando Plc joint ventures, are targeting combined investments of about $35 billion in greenfield and brownfield projects aimed at boosting production.
It further stated that local firms are increasingly positioning themselves to benefit from Nigeria’s growing gas sector, given that indigenous operators currently hold around one-third of the country’s gas reserves.
In addition, Wood Mackenzie pointed to ongoing licensing opportunities and expected consolidation within the local upstream space as factors that could further strengthen indigenous participation.
However, despite the optimism surrounding the growth of Nigerian firms, the report warned that financing remains the biggest obstacle confronting local operators, especially in managing ageing oil assets in a difficult investment climate.
According to the consultancy, more than half of Nigeria’s oil production currently comes from fields that commenced operations before the year 2000, making them increasingly expensive and technically difficult to sustain.
Wood Mackenzie added that the country’s operating environment also poses additional concerns for lenders and investors, citing high production costs, emissions intensity and lower-value resource bases compared to some competing oil jurisdictions.
The report estimated that operating costs for Nigerian independents average nearly $15 per barrel of oil equivalent, the highest across Africa.
While describing Nigeria’s diverse corporate landscape as beneficial in reviving upstream activity, the consultancy cautioned that it also introduces operational complexity and project execution risks.
“Financing remains the major obstacle. Nigerian independents are challenged with financing late-life projects in a high-risk environment without the luxury of large balance sheets. With more than half of Nigeria’s oil production coming from fields that started up before 2000, operating depleted and marginal fields will become increasingly difficult.
“Lenders must also consider Nigeria’s high costs and emissions and its less advantaged resources, which provide lower value on a unit basis. Operating costs for Nigerian independents average close to $15/boe, the highest across Africa. While the county’s diverse corporate landscape has helped reinvigorate the sector, it also brings complexity and risk to operations and project execution,” the report stressed.
The report nevertheless acknowledged that the Nigerian government has taken significant steps to support indigenous participation through local content legislation, competitive licensing frameworks and regulatory reforms aimed at encouraging domestic investment.
It said the establishment of institutions and policies promoting local participation has strengthened the role of indigenous companies across the value chain.
Still, the consultancy argued that more reforms are required to reduce investment risks and sustain momentum in the sector.
According to Wood Mackenzie, improving security, reducing production downtime, accelerating project approvals and ensuring better facility uptime are necessary to unlock additional investment from indigenous operators.
The report warned that without further improvements, some Nigerian companies may increasingly seek expansion opportunities outside the country despite the significant untapped opportunities available domestically.
“Much has already been done. Laws promoting local content, alongside a new regulator to enforce them, have prioritised domestic company participation. The competitive licensing framework, which typically issues smaller block sizes, supports this approach. But more action is needed to reduce risk: increasing facility uptime, accelerating project approvals and ensuring security are key.
“Without further improvements, Nigeria risks curbing investment by its independents. Even with significant resources to go after, some are already looking beyond Nigeria for growth. Current high oil prices offer a massive opportunity to increase domestic production with the help of indigenous players. Losing this investment to other markets should not be an option,” Woodmac argued.
It also clarified that the growing influence of indigenous operators does not imply a total withdrawal of international oil companies from Nigeria. Rather, it described the trend as a “high-grading” of portfolios, with international majors shifting focus towards deepwater and gas projects.
The consultancy referenced recent and ongoing divestments involving companies such as TotalEnergies and Eni, while noting that future investments by the majors are expected to concentrate largely on deepwater developments and gas supply projects linked to the Nigeria LNG Limited.
Wood Mackenzie highlighted the approval of the Bonga North deepwater project by Shell as Nigeria’s first deepwater final investment decision in over a decade, adding that other projects such as Bonga South West Aparo, Usan West, Owowo West, Etan Zabazaba and Ima Gas Field are also expected to advance under improved fiscal conditions.
UNNO Group Launches Institute to Boost Aesthetic Medicine Training in Nigeria
Emmanuel Addeh in Abuja
The UNNO Health Group at the weekend launched its institute in Abuja to boost professional aesthetic medicine training, ensure improved regulation as well as reduce medical tourism outside the country.
Speaking during the launch in Abuja, the founder and Chief Executive Officer of UNNO Health Group, Hilda Titiloye, said the institute was established to provide postgraduate training and build professional standards within the rapidly growing aesthetic medicine industry.
Titiloye explained that the UNNO Health Group had created an ecosystem in the aesthetic medicine and dermatology space through service delivery, manufacturing of medical products and professional education.
“What we are doing today is trying to build a community of beauty professionals that are in the medical space. The institute would cater to aesthetic physicians, dermatologists, plastic surgeons, nurses and dentists practicing aesthetic medicine. We are trying to learn together and foster a culture of continuous professional development,” she explained.
Titiloye noted that the institute would also help create a stronger professional voice capable of advocating laws and structures to sanitise the industry and improve patient safety. She said the initiative would contribute to reducing medical tourism as more Nigerians now access aesthetic procedures locally instead of travelling abroad.
“A lot of the procedures we used to travel for, they come to us for them and our colleagues as well. The beauty and aesthetic industry had become a major source of employment for young Nigerians through vocational and professional opportunities,” she noted.
On her part, a Professor of Medicine in Dermatology, University of Abuja, Perpetua Ibekwe, stressed the need for a dedicated regulatory framework for aesthetic medicine in Nigeria.
Ibekwe said the absence of a specific regulatory board had created overlaps among practitioners with different qualifications and competencies. “What we have right now are different groups with different levels of education in the same industry,” she said.
She explained that while bodies such as the Medical and Dental Council of Nigeria (MDCN), National Agency for Food and Drug Administration and Control (NAFDAC), health facility regulators and the Federal Competition and Consumer Protection Commission (FCCPC) play oversight roles, there was still no unified body dedicated to aesthetic medicine.
According to her, a proper regulatory framework would ensure practitioners operate strictly within their areas of competence. She, however, argued that unqualified individuals carrying out procedures beyond their expertise should be treated as engaging in criminal conduct.
A consultant physician and dermatologist, Gboyega Olarinoye, said the “Masters of Beauty” initiative was carefully designed to reflect African realities and definitions of beauty within the aesthetic medicine industry.
According to him, the initiative was created to showcase beauty standards and solutions tailored to African genetic and environmental peculiarities rather than relying solely on Eurocentric models.
“It is good to share ideas with other people in the space, to try and disseminate the knowledge that works for us, not just imbibing the Eurocentric culture or definitions of beauty,” he said.
Olarinoye noted that the aesthetic medicine industry had become a massive global sector with increasing demand for quality services within Nigeria and Africa. “The problem has always been the supply, and the ability to provide quality services similar to what you can get outside,” he said.
He added that strengthening local expertise and research would not only reduce medical tourism but also improve access to quality care and retain resources within the country.
“If we begin to study ourselves and define our own solutions, it’s going to be much more affordable, much cheaper, more accessible and even more successful in our own setting,” he stated.
The dermatologist further described the conference as a platform for promoting science-based aesthetic practice and professional advocacy within Africa.
“This creates advocacy, it’s creating knowledge, and it’s opening the space for quality science-based evidence and evidence-based practice of aesthetic dermatology in Africa,” he added.
Also speaking, Founder of AfroMed International, George Chabtini, said Nigeria’s aesthetic medicine sector had witnessed rapid growth in recent years.
Chabtini, whose company distributes medical aesthetic products across the country, said the number of aesthetic clinics in Nigeria had risen significantly within three years. “When we came, there were maybe 300 or 400 clinics. Today, we are reaching around 1,000 clinics,” he said.
He described the sector as one of the fastest-growing segments of Nigeria’s healthcare industry and predicted further expansion over the next few years. Chabtini also called for stronger regulation and increased public education to protect consumers and promote best practices within the industry.
