During a discussion at the Africa CEO event in Rwanda, Patrick Pouyanne, the CEO of TotalEnergies, highlighted the reasons behind the diversion of $6 billion in energy projects from Nigeria to Angola.
Pouyanne emphasized that Angola offers a more stable policy framework, which is a crucial factor businesses consider before making investments.
Pouyanne acknowledged that the Niger Delta region in Nigeria is highly productive in terms of oil, but the inconsistent policy environment has made it challenging for investment.
He revealed that TotalEnergies has not conducted oil exploration in the region for 12 years, citing Nigeria’s tendency to introduce new legislation without resolving previous issues.
Pouyanne expressed the need for a more decisive approach, stating, “You love to debate. There is always a new legislature in Nigeria about a new petroleum law.
When you have such permanent debates, it’s difficult for investors looking for long-term structure to know what direction to go.” He highlighted the importance of settling debates and establishing a reliable framework that investors can trust.
In addition to policy concerns, Pouyanne pointed out that insecurity and a lack of skilled workforce are major challenges hindering investment in Nigeria.
These factors further contribute to the decision to invest in Angola, where TotalEnergies recently announced significant projects worth $6 billion due to the country’s stable framework.
Angola’s stable policy environment and integrated policies have positioned it as an attractive destination for investment, allowing businesses to have clarity and confidence in their ventures.
