In May 2013, when Lekoil, a Nigerian upstream oilfirm, acquired a majority stake in two offshore Namibian blocks within the Luderitz Basin, it marked one of the first times an indigenous Nigerian company had moved across Africa.
It signalled the emergence of Nigerian firms as operators capable of managing assets across African borders.
Over the following decade, other Nigerian operators followed suit.
Oranto Petroleum made its entry into Uganda’s Lake Albert Basin in 2017, while Waltersmith Petroman was awarded an oil block in Equatorial Guinea’s Niger Delta Basin in 2019.
These early expansions led to the broader trend of growth for local players as they took advantage of divestment from global players.
The trend continues today.
In February 2026, Aiteo acquired an exploration license in Libya, becoming the first Nigerian oil firm to win a licensing bid in Libya. The deal shows that Nigerian independents are now regarded as serious players in the oil business.
What started as a series of relatively isolated exploratory efforts has now grown into a big movement. Nigerian local energy firms are increasingly moving beyond domestic markets as international majors divest mature assets, taking a more prominent role in the region’s energy markets.
From East to Southern Africa and across North Africa, this continental expansion is laying the foundation for a new chapter in Africa’s oil and gas landscape.
Nigerian independents step into assets once dominated by majors
For most of Nigeria’s oil history, International Oil Companies (IOCs) like Shell, ExxonMobil, Total, and Eni dominated, especially in onshore and shallow water operations.
However, in recent years, a structural transformation has been taking place. Multinationals have been divesting from onshore and marginal upstream operations, and local operators have been picking up those assets.
Between 2021 and 2025, a series of high‑profile asset transfers saw local firms assume control of fields, pipelines and terminals previously operated by global majors.
Local participation is no longer marginal. According to industry estimates, indigenous producers now account for over 50% of Nigeria’s crude oil production, a notable shift from earlier decades when multinationals dominated output.
According to Lagos-based energy analyst, Alabi Johnson, this transition represents a structural maturation of Nigeria’s oil industry.
“What we are seeing is the localisation of operational control,” Alabi told Energy in Africa.
“Indigenous companies are no longer niche participants, they are becoming the backbone of production, and that changes how capital and expertise accumulate within the country.”
Today, Nigerian independents are not only consolidating their hold on domestic oilfields but also building operational capacities that increasingly enable them to look beyond national borders.
Seplat, Oando and Renaissance reshape Nigeria’s ownership map
At the forefront of Nigeria’s independent oil revolution are a handful of companies that have reshaped the domestic ownership landscape and laid foundations for outward ambition.
Seplat Energy, one of the largest indigenous producers, emerged as a defining force following its $1.28 billion (₦1.7 trillion) acquisition of ExxonMobil’s shallow‑water assets.
The transaction more than doubled its portfolio and positioned Seplat as a key upstream player. By mid-2025, Seplat’s average production had jumped to over 131,000 bpd.
Oando, another major independent, has also expanded its upstream business after acquiring assets from the Italian energy firm, Eni in a transaction valued at approximately $783 million (₦1.05 trillion).
The company’s selection as preferred bidder for the lease of a refinery in Trinidad and Tobago also signals an ambition to participate in global downstream infrastructure while leveraging experience gained within West Africa’s distribution networks.
Renaissance Africa Energy also made headlines with its $2.4 billion (₦3.2 trillion) acquisition of Shell’s asset, underscoring the depth of the divestment trend and the readiness of Nigerian operators to absorb large, complex asset bases.
Collectively, experts say these transactions have reconfigured Nigeria’s ownership landscape.
Beyond boosting production capacity, they have enhanced indigenous firms’ access to financing, operational partnerships and technical capabilities previously associated with multinational operators.
The result is an ecosystem where Nigerian companies now control significant reserves, infrastructure and revenue streams, a foundation enabling outward expansion strategies.
Aiteo, Dangote and Atlas Oranto carry expansion beyond Nigeria
With a stronger domestic foundation, several Nigerian firms have been able to tap opportunities in other African countries, thus marking a new era in African engagement.
In recent years, Aiteo, a leading Nigerian oil company in the upstream and midstream sector, has been at the forefront in the drive to expand operations beyond Nigeria. The company’s recent award of an exploration licence in Libya’s Murzuq Basin this month marked a major milestone in this respect.
The company has also secured a massive engineering, procurement, and construction contract to build a 240,000 bpd refinery in Mozambique.
Dangote Refinery in Lagos, which has an initial capacity of 650,000 bpd, has already impacted the fuel market in West and Central Africa by replacing imported fuel with domestically produced fuel.
In addition, the plan to double capacity to 1.4 million bpd will make it one of the largest single-train refineries in the world. In terms of external operations, Dangote has announced plans to invest $1 billion (₦1.3 trillion) in energy infrastructure in Zimbabwe.
In 2025, the Atlas Oranto Petroleum Limited won four offshore exploration blocks in Liberia, a major boost for the country’s dormant energy sector.
Other companies from Nigeria have also been exploring opportunities in other countries. For example, FIRST E&P signed a deal in mid-2025 to assess the Mnazi Bay North gas block in Tanzania.
For Accra-based energy economist John Mensah, these moves reflect a broader evolution in African corporate strategy.
“Historically, African firms operated within national boundaries while multinationals expanded globally,” John told Energy in Africa.
“The emergence of Nigerian companies investing across Africa suggests that capability accumulation is now translating into geographic ambition.”
Drivers behind the expansion
Several structural factors underpin Nigerian independents’ cross-border push. The gradual exit of multinational companies from onshore and shallow water in Nigeria has provided an opportunity for local players to purchase assets and achieve scale.
Replacement of reserves has remained an important factor as mature domestic assets decline, and companies look for new acreages and exploration opportunities overseas. Geographic diversification has also helped operators spread risks across various jurisdictions.
Market dynamics further support expansion. The demand for refined products in Sub-Saharan Africa is expected to grow steadily in the next decade due to the effects of population growth, urbanisation, and industrialisation.
Investment in refining, storage, and distribution infrastructure will provide opportunities to benefit from downstream margins.
Policy frameworks have also played a role. Fiscal clarity and regulatory reforms were also provided through Nigeria’s Petroleum Industry Act.
At the same time, integration initiatives such as the African Continental Free Trade Area are gradually making it easier for investment across borders, thereby creating an enabling environment for regional energy sector participation.
Lastly, there is the aspect of financial capacity, which has also been built through acquisitions in the domestic market and enhanced access to capital markets.
The local companies that have successfully integrated acquired assets have now developed balance sheets that are conducive for growth strategies.
Implications for African energy markets
The cross-border investments of Nigerian operators have several implications for the industries on the continent and the markets as well. Structurally, it indicates the beginning of the Africanisation of the ownership of hydrocarbon assets, with African operators increasingly shaping the agenda of exploration, production, and infrastructure development.
Experts say this trend may improve the retention of value within the local economy through reinvestment, employment, and development of the services sector. The operators may also be more adaptable to the socio-political setting, which could accelerate the implementation of projects in settings where engagement with the community and the state is paramount.
However, challenges remain. In cross-border operations, there are issues related to dealing with a variety of fiscal systems, currency risks, and political environments. Financing big projects will still be a capital-intensive activity. Managing operational efficiency in a geographically dispersed portfolio will be a challenge.
Despite these challenges, the fact that African operators are investing across several markets brings a new dynamic to the energy competition on the continent, which is no longer driven by foreign capital but by the ambitions of African operators.
What will the future look like?
The trajectory of Nigerian independents suggests that the current expansion phase may represent only the early stages of a broader transformation. As domestic asset consolidation continues and financing ecosystems deepen, additional companies may pursue cross-border opportunities spanning exploration, infrastructure and energy transition projects.
Whether Nigerian firms will eventually become pan-African majors will depend on the discipline in execution, the quality of partnerships, and access to capital. The direction of travel is however increasingly clear. From the acquisition of acreage in the upstream to investment in refineries and fuel retail in the region, Nigerian oil firms are building a web of interests stretching far beyond the country.
For Africa’s energy narrative, the implications are significant. A continent long characterised by external operational leadership may be entering an era where its own companies play central roles in shaping hydrocarbon development pathways.
What began as domestic asset acquisitions in response to multinational divestments is gradually turning into a bigger story.
Nigerian independents are not only inheriting Africa’s oil assets. They are beginning to redefine who steers the continent’s energy future.
