Oil production in Africa is dominated by three major players: Nigeria, Angola, and Libya, which play critical roles in the global oil market. As of 2024, these three countries collectively produce about 3.7 million barrels per day, representing a significant share of the world’s oil supply. However, each of these nations faces unique challenges and opportunities, ranging from internal political issues to efforts towards economic diversification.
- Nigeria: The oil giant facing internal challenges
Nigeria, Africa’s largest oil producer, has a daily production of between 1.3 and 1.5 million barrels in 2024. With proven reserves of 36 billion barrels, the country holds the 11th largest production capacity in the world. However, Nigeria’s production is often hindered by a series of structural problems, including oil theft, which government estimates suggest leads to the loss of approximately 200,000 barrels per day. Additionally, frequent pipeline sabotage and outdated infrastructure directly affect output.
Nigeria’s economy is heavily reliant on oil, which accounts for more than 90% of export revenues and about 60% of government income. However, since President Bola Tinubu took office in May 2023, fuel prices for Nigerians have skyrocketed. As of October 2024, petrol prices hit N1,030 per liter in Abuja, an increase of over 411% since Tinubu’s administration began, when prices were at N195. This soaring inflation, coupled with the removal of fuel subsidies, has led to significant social unrest and deeply affected the cost of living.
- Angola: Stable growth and economic diversification
Angola, Africa’s second-largest oil producer, maintains a daily output of between 1.1 and 1.2 million barrels in 2024. Oil is the backbone of Angola’s economy, representing 95% of exports and over 60% of government revenues. With proven reserves of approximately 9 billion barrels, Angola has successfully attracted foreign investment through partnerships with international companies like Chevron, TotalEnergies, and BP, which operate offshore oil exploration.
Unlike Nigeria, Angola has managed to maintain stable production, thanks to its well-developed offshore infrastructure. In recent years, the country has focused on economic reforms to reduce its reliance on oil and diversify its economy. Between 2020 and 2023, agricultural production increased by 15%, with investments in crops such as maize, cassava, and rice. The Angolan government has also been encouraging the mining and tourism sectors, aiming to create new revenue streams and reduce vulnerability to oil price fluctuations.
Moreover, Angola has been investing in essential infrastructure such as roads and irrigation systems to support the growth of its agricultural sector. In 2024, the country announced a 20% increase in its budget allocation for rural development as part of its long-term strategy for economic diversification. The International Monetary Fund (IMF) projects that by 2030, Angola’s non-oil sector could grow at a rate of 4% annually, becoming a crucial part of the national economy.
- Libya: Vast resources amid political instability
Libya, with proven oil reserves of 48 billion barrels, holds the largest oil reserves in Africa and the ninth-largest in the world. In 2024, Libya’s oil production stands at between 1 and 1.2 million barrels per day, although its installed capacity is significantly higher at 1.6 million barrels per day. Since the fall of Muammar Gaddafi in 2011, the country has been plagued by political crises and internal conflicts, severely limiting its ability to operate at full capacity.
Libya’s oil production is highly volatile, with exports frequently disrupted by conflicts between militias and rival factions. In 2020, for example, production dropped to just 300,000 barrels per day during the height of the civil war. Despite being a significant revenue source, with 95% of the country’s exports derived from oil, Libya is still far from stabilizing its political and economic environment. The international community continues to monitor the country in hopes of a resolution that will allow Libya to reclaim its prominent position in the global oil market.
Overall comparison
In terms of production, Nigeria leads Africa, but its internal problems, such as oil theft and outdated infrastructure, hinder its full potential. Nigeria’s economy, heavily dependent on oil, suffers from unstable fuel prices and inflation, which exceeded 22% in 2024. Libya, despite having the continent’s largest oil reserves, remains the most vulnerable due to ongoing political instability and civil conflict, limiting its long-term production potential.
On the other hand, Angola, while producing less oil than Nigeria, has demonstrated greater stability thanks to its offshore production and economic reforms. The country is actively pursuing economic diversification and reducing its dependency on oil. The 15% growth in its agricultural sector, increased investments in infrastructure, and the promotion of mining and tourism indicate a more sustainable path forward.
Among Africa’s top three oil producers, Angola stands out for its consistent efforts toward economic diversification. Unlike Nigeria and Libya, whose economies remain highly exposed to oil price fluctuations, Angola is investing in alternative industries to ensure more sustainable growth. The development of agriculture and infrastructure investments showcase the seriousness of the Angolan government in addressing the challenge of reducing its reliance on oil.
With projections of growth in the non-oil sector in the coming years, Angola is positioning itself as a more resilient economy capable of better weathering global oil price crises. Economic diversification is crucial for long-term stability, and Angola is emerging as a model for other African nations that are heavily reliant on oil but aspire to secure a more balanced and sustainable future.