PwC has urged South African investors, banks, and policymakers to take direct ownership stakes in Nigeria’s upstream oil industry as a strategy to secure crude supply for South Africa’s refineries, drawing comparisons with how Western oil majors built long-term energy security through overseas investments.
The recommendation was made by PwC’s Africa Oil and Gas Lead, Pedro Omontuemhen, during the Fourth South Africa Week held in Lagos, themed “Repositioning and Promoting Energy Investments between South Africa and Nigeria.”
Omontuemhen argued that both Nigeria and South Africa have complementary energy strengths that could unlock major cross-border investment opportunities across oil, gas, and renewables if better integrated.
He noted that South Africa currently relies heavily on imported crude for refining, and suggested that South African financial institutions and private investors replicate the strategy used by companies like ExxonMobil and Total by investing directly in Nigeria’s oil exploration and production sector to secure guaranteed crude allocations.
He also highlighted Nigeria’s ongoing upstream licensing round, where dozens of oil blocks are being made available, encouraging South African participation as a way to secure long-term energy supply chains.
At the same event, he pointed to broader collaboration opportunities between both countries, including gas monetisation, renewable energy development, and dual stock market listings to improve capital access and investment flows.
He further stressed that Nigeria’s large population and resource base combined with South Africa’s stronger financial systems and technical capacity could create a powerful continental energy partnership if properly coordinated.
Meanwhile, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) also urged members of the Crude Oil Refinery Owners Association of Nigeria (CORAN) to consider acquiring upstream oil assets themselves as a long-term solution to crude supply challenges.
The regulator said direct ownership in oil blocks could stabilise crude access for local refiners, while also encouraging long-term contracts with producers to reduce supply uncertainty.
It also acknowledged persistent infrastructure challenges such as pipeline shortages, storage limitations, and logistics bottlenecks affecting crude distribution to domestic refineries.
