Sub-Saharan Africa’s Oil and Gas Project Prediction in 2025: What’s Realistic, What’s Next

Let’s cut the fluff: The oil and gas sector in Sub-Saharan Africa is on the verge of a major shift by 2025.

Forget the rosy predictions and generic advice you’ve heard before. This is where the rubber meets the road. These are the predictions that will actually shape the future, based on hard truths and on-the-ground reality.

So, what does the future hold? Let’s break it down.

  1. East Africa’s New Role as the Region’s Powerhouse.

You’ve heard all the buzz about East Africa, right? But 2025 is going to solidify the region’s role as Sub-Saharan Africa’s new energy frontier. Tanzania, Mozambique, and Uganda are set to emerge as the new power players in the oil and gas scene.

Mozambique’s massive offshore natural gas reserves have been on the radar for years. But here’s the reality: In 2025, the offshore projects won’t just be about gas exports—they’ll become an engine for regional industrialization.

Expect Tanzania to rise as the hidden champion. Tanzania has an undervalued, but significant, natural gas potential, and in 2025, it will start attracting serious foreign investment, especially in gas-to-power infrastructure.

But here’s the kicker: East Africa’s oil and gas boom won’t just be a regional story. It will have a global impact. The geopolitical instability that has plagued traditional powerhouses like Nigeria and Angola will push international players to increasingly look to East Africa for a more stable investment climate.

  1. Refining Infrastructure Becomes King.

The oil and gas sector in Sub-Saharan Africa has long been obsessed with exploration and production. But by 2025, a major shift will occur: Refining infrastructure will become the golden ticket.

Why? Because Africa has been exporting raw crude for far too long, and that’s a huge missed opportunity. For too many years, Sub-Saharan Africa has lacked the capacity to refine its own resources and add value domestically. That will change. Countries like Nigeria, Angola, and Uganda will increase refining capacity—not just to meet domestic needs, but to export refined products across the continent.

In fact, refining will become the real battleground for Africa’s energy future. Expect new refinery projects, especially in Uganda, Nigeria, and South Africa, to attract massive capital flows by 2025. The refining market will be the profit driver that legacy oil and gas companies have overlooked in favor of upstream exploration.

  1. The Shift to Gas: More Power, Less Oil.

Let’s be blunt: The days of oil being king are numbered, especially in Sub-Saharan Africa. By 2025, natural gas will take center stage—not just as a domestic energy source, but as a tool for regional power generation.

The push for gas-to-power projects will surge across East and West Africa. Tanzania will become a key player in the gas-to-power sector by leveraging its natural gas reserves to fuel power plants not only for domestic consumption but for regional electricity exports.

Here’s the truth that few want to talk about: Gas is the bridge fuel—a cleaner, more reliable alternative to coal and a stepping stone toward renewable energy. The more forward-thinking nations in Sub-Saharan Africa will embrace gas for its flexibility, reliability, and cleaner emissions profile, giving them a competitive edge in a future where sustainability is no longer optional.

  1. The Rise of Local Players: Africa’s Oil Industry Goes Homegrown.

It’s not just the international majors who will benefit from Africa’s oil and gas boom. In 2025, the big names you’re used to hearing—Shell, Exxon, BP—will be joined by a new breed of local players. This is going to be one of the most underreported, but most significant, shifts in Sub-Saharan Africa’s oil and gas industry.

The major multinationals have dominated the African market for decades, but local companies and entrepreneurs will play a much larger role in 2025. As infrastructure, training, and local expertise improve, indigenous oil and gas firms will increasingly control parts of the value chain—from exploration to refining to distribution.

Think about it: In countries like Nigeria and Angola, you already see the rise of indigenous operators who know the terrain better than anyone. By 2025, these local firms will have grown stronger, more competitive, and more capitalized. They will push international players for market share in a way that hasn’t been possible before.

 

In essence, the age of the multinational as the dominant force in Sub-Saharan Africa is coming to an end. The locals are rising, and they’re bringing their A-game.

  1. Geopolitical Risk is Real—and It Will Be a Factor in Every Decision.

Here’s the hard truth: Sub-Saharan Africa has been marred by political instability—and it will continue to be a geopolitical minefield for investors. Countries like Nigeria, Angola, and Cameroon face significant political risks, and those risks will increase by 2025.

That’s why you need to pay attention to the political climate more than ever. In 2025, no oil and gas project in Sub-Saharan Africa will go ahead without a thorough assessment of political risk. That means investors, multinational companies, and local operators will need to be extra vigilant when it comes to navigating national policies, changing regulations, and potential unrest.

 

But not all is doom and gloom. Tanzania and Uganda, for example, will remain relatively stable, which will draw more investment and help drive projects forward. Those countries that maintain political stability will win the most capital flows, while those with volatile political climates will see investments stagnate.

  1. The Emergence of Hybrid Energy Models: Oil, Gas, and Renewables.

By 2025, oil and gas companies won’t just focus on fossil fuels—they’ll become integrated energy providers. The hybrid energy model will be the future, where oil and gas companies not only produce fossil fuels but also invest heavily in renewable energy projects.

Why? Because renewables are no longer just an environmental concern—they’re a business opportunity. Companies that fail to embrace the hybrid model will fall behind. Solar, wind, and even geothermal energy will be integrated with traditional oil and gas production, and Sub-Saharan Africa will be no exception.

The key players in 2025 will be those who combine fossil fuels with renewables in a way that creates a more sustainable, resilient energy portfolio. Countries like South Africa, Uganda, and Nigeria are already starting to move in this direction, and by 2025, expect them to have a strong hybrid energy portfolio that balances oil, gas, and renewables.

In Conclusion: 2025 Will Be the Year of Real Change—Not Just Hype.

You want a crystal ball? Here it is: By 2025, Sub-Saharan Africa’s oil and gas sector will be almost unrecognizable. East Africa will take center stage, refining will drive profits, gas will dominate the energy landscape, local players will rise, and geopolitical risks will be front and center.

 

So, if you’re betting on the status quo, you’ll lose. If you’re waiting for the next big thing, it’s time to start paying attention to these changes—the future is happening now, and it’s a whole lot messier, but a lot more exciting, than you’ve been led to believe.

The CNG Business in Tanzania: Why Now is the Time to Jump In (Before Everyone Else Does)

If you haven’t noticed yet, compressed natural gas (CNG) is making waves in the global energy market. But here’s the kicker: while the rest of the world has been talking about the benefits of CNG for years, Tanzania is only just starting to scratch the surface.

If you’re not paying attention, you’re already behind. But for those who see the writing on the wall, the opportunity in CNG in Tanzania is huge. The market is ripe, the demand is growing, and there’s still plenty of room to establish yourself as a leader.

So, why should you care? Let’s break it down.

  1. Tanzania’s Growing Demand for Clean, Affordable Energy.

Tanzania is at a crossroads. The country is experiencing rapid growth, both economically and demographically. More people mean more demand for energy, and the current infrastructure can’t keep up. The government is heavily invested in clean energy solutions, and CNG is rapidly emerging as a viable alternative to traditional fuels like petrol and diesel.

Why CNG?

For one, it’s cheaper. CNG is less expensive than petrol or diesel, making it the obvious choice for many consumers. But it’s not just about cost—it’s about reliability and sustainability. Tanzania has large reserves of natural gas, making CNG an even more attractive solution for the country. If you’re thinking of entering the CNG business, now is the time to get ahead of the curve, before the market gets saturated.

  1. Environmental Pressure is Mounting.

Let’s not sugarcoat it: Tanzania is facing serious environmental challenges. From deforestation to air pollution, the pressure to adopt cleaner, greener energy solutions is increasing. CNG is one of the most environmentally friendly fossil fuels available. It burns cleaner, emits fewer greenhouse gases, and produces less particulate matter compared to petrol and diesel.

Governments, consumers, and businesses alike are increasingly looking for ways to reduce their carbon footprints. And guess what? CNG is a perfect fit. It’s a win-win: it’s cleaner, cheaper, and available right at home. For a nation like Tanzania that’s looking to modernize while maintaining its natural resources, CNG is the logical next step.

  1. The Government is On Your Side.

This is critical: Tanzania’s government is committed to improving energy access and promoting cleaner energy alternatives. They’ve already laid the groundwork by investing in natural gas infrastructure, and as part of their economic development strategy, they’re keen to reduce the nation’s dependence on imported fuels.

Tanzania’s energy policy is set up to support alternative fuels like CNG. The government is looking for partners who can help unlock the potential of local gas reserves for the domestic market.

In a landscape like this, being an early mover gives you a serious advantage—because the government is ready to work with businesses that want to get into CNG.

  1. CNG Stations Are The New Petrol Stations.

There’s a shift happening, and if you’re serious about jumping into the CNG business, you’re essentially positioning yourself to be the leader of tomorrow.

Here’s the thing: the infrastructure for CNG is still in its infancy in Tanzania, which means there’s massive opportunity for businesses that can create a reliable network of CNG fueling stations. Unlike petrol stations, which are already pretty widespread, CNG stations are scarce—and that scarcity means opportunity.

If you can get in now and establish a robust CNG station network, you’ll have a first-mover advantage that will be incredibly difficult for competitors to replicate.

But it’s not just about putting up a few stations and hoping for the best. You need to do it right. Focus on location, service reliability, and competitive pricing. Think about it this way: every CNG station you put up now has the potential to generate a customer base that will continue to grow over the next 5-10 years. But you need to act fast.

  1. Fewer Players = Less Competition (For Now)

Here’s the cold, hard truth: The CNG market in Tanzania is not as crowded as other energy sectors. Right now, you’re looking at a small pool of competitors. There aren’t that many players who’ve recognized the potential of CNG just yet. But, trust me, they will.

Now is the time to stake your claim. The window is still open, but it won’t be forever. As more people wake up to the benefits of CNG and the demand grows, more companies will want a piece of the action.

The good news? You’re here first. This means you have a window to establish your brand, build trust with customers, and lock in your position as a leader in the market.

  1. The Financial Upside

Now let’s talk money—because that’s what it really boils down to, right? CNG is a low-cost alternative fuel, but it’s also a high-margin business when managed well. Lower operating costs, higher profit margins, and the ability to scale rapidly make it an attractive business opportunity.

As you expand your network of CNG stations, revenue from refueling will be your bread and butter, but there’s also room for value-added services—like offering vehicle maintenance, selling CNG-related products, or partnering with fleet operators for long-term contracts.

In short, the financial upside is massive—if you’re willing to play the long game.

The Bottom Line: CNG is the Future. Are You Ready?

Tanzania’s energy sector is on the cusp of a revolution, and CNG is going to be at the center of it. The demand for cleaner, cheaper energy is rising, and the government is actively supporting businesses that are willing to help the country’s energy infrastructure evolve.

But here’s the thing: if you wait too long, the opportunity will pass you by. Right now, you have a chance to become a leader in Tanzania’s emerging CNG market. The infrastructure is still being built. The awareness is still growing. But the demand? It’s already here.

So, if you’ve been thinking about starting a CNG business in Tanzania, the time is now. The window is wide open, and if you don’t seize the opportunity, someone else will.

This is your moment.

Why Tanzania’s LNG Projects Are the Hidden Crown Jewel of Africa’s Energy Future

In the world of energy, Tanzania’s Liquefied Natural Gas (LNG) projects are like a brilliant star hiding in plain sight.

While the global stage is captivated by energy giants and flashy headlines from West Africa and Mozambique, Tanzania is quietly building something transformational—a strategy that is poised to change not only its economy but the energy dynamics of an entire region.

Let’s cut through the noise. The buzzwords like “potential” and “growth” are overused. What Tanzania has isn’t potential—it’s inevitability. LNG here isn’t just another natural resource project; it’s a calculated move to redefine energy in East Africa and carve out a space on the global energy map.

  1. The Geography Advantage: What Tanzania Has That Others Don’t

Every LNG project starts with reserves, and Tanzania has plenty—an estimated 57 trillion cubic feet of natural gas waiting to be harnessed. But reserves alone aren’t the story. Tanzania’s geography is its silent weapon.

Situated along the Indian Ocean, Tanzania offers unmatched access to high-demand markets in Asia, Europe, and even the Americas. Shipping LNG from Tanzania to energy-hungry nations like India or China is faster, cheaper, and more efficient than from competitors in West Africa or Mozambique.

Mozambique, with its impressive gas discoveries, may be seen as a strong regional competitor. However, Mozambique’s LNG projects face hurdles, including geopolitical instability, which Tanzania has managed to avoid.

Competitors have reserves; Tanzania has location and logistics. This alone makes its LNG projects undeniable contenders in the global market.

  1. Government Strategy: A Calculated Long Game.

Here’s the part the critics miss: Tanzania isn’t in a rush, and that’s intentional. Delays in finalizing agreements and infrastructure development have been labeled as inefficiencies. But what if this isn’t disorganization—what if it’s strategy?

 

The Tanzanian government is playing the long game, ensuring it doesn’t undersell its assets or give away too much control to foreign investors. By carefully negotiating deals with energy giants like Shell and Equinor, Tanzania is securing a model that balances foreign expertise with national benefit.

Unlike some of its competitors who may prioritize short-term gains, Tanzania is focused on building a sustainable energy economy that benefits local industries, creates jobs, and fuels long-term development.

  1. Infrastructure: The Quiet Revolution.

While flashy announcements dominate the headlines, the real work is happening underground—literally. Tanzania is investing in world-class infrastructure, from pipelines to liquefaction plants, that will make its LNG projects globally competitive.

The planned Lindi LNG terminal is a cornerstone. Once operational, it will not only facilitate exports but also position Tanzania as a regional energy hub, supplying cleaner fuel to neighboring countries and beyond.

Mozambique’s projects may have gotten a head start, but Tanzania’s calculated, methodical approach ensures that its infrastructure is built to last, with minimal risks and maximum impact.

  1. The Market Nobody Talks About: Local Demand.

While most eyes are on exports, the untapped domestic market is where the true transformation lies. Tanzania’s growing industrial sector and urbanization are driving a massive need for energy. LNG is perfectly positioned to fill that gap.

Imagine manufacturing hubs powered by reliable LNG. Imagine households transitioning from charcoal to cleaner energy sources. Imagine an economy that no longer depends on expensive imports for its energy needs.

This isn’t just theory; it’s a strategic shift in energy independence that Tanzania is engineering through LNG.

  1. Cleaner Energy for a Changing World.

The global energy narrative is shifting toward cleaner, more sustainable solutions. LNG, while still a fossil fuel, is significantly cleaner than coal and oil. Tanzania’s projects align perfectly with this transition, offering a bridge fuel that meets today’s energy demands while paving the way for a greener future.

This positions Tanzania not just as an energy supplier but as a preferred partner for nations and companies committed to reducing their carbon footprint.

  1. The Competition’s Blind Spot: Tanzania’s Unique Selling Proposition.

Here’s the twist: While everyone else competes on the size of reserves or export volumes, Tanzania’s real edge is in its integrated approach. By aligning LNG with local development, regional supply, and global demand, Tanzania is creating a multi-dimensional energy ecosystem that no other competitor in Africa is replicating.

Mozambique may boast large reserves and ongoing projects like Rovuma LNG, but it has yet to fully integrate its LNG strategy with local markets and regional infrastructure. West Africa may have size, but Tanzania has strategy.

  1. What This Means for Investors and Stakeholders

If you’re an investor, energy professional, or entrepreneur, the message is simple: Tanzania’s LNG projects are not just another opportunity—they’re the opportunity.

The combination of strategic reserves, infrastructure development, local demand integration, and cleaner energy positioning makes this a rare confluence of factors that’s hard to find elsewhere.

But the window won’t stay open forever. Those who move early will be the ones who secure not just profits but a foothold in one of Africa’s most exciting energy transformations.

The Bottom Line: Tanzania Is Playing Chess While Others Play Checkers.

Tanzania’s LNG projects aren’t just about natural gas—they’re about reshaping an entire energy ecosystem. This isn’t about catching up with the competition; it’s about leapfrogging them entirely.

While Mozambique and West Africa race to extract and export, Tanzania is building something bigger: an LNG strategy that’s sustainable, integrated, and future-focused. And in the process, it’s quietly becoming the hidden crown jewel of Africa’s energy future.

If you’re not paying attention to Tanzania’s LNG projects yet, now’s the time to start. The real opportunity isn’t in what’s obvious—it’s in what’s overlooked.

LNG Project in Tanzania: Why Everyone’s Overlooking The Real Opportunity

LNG (Liquefied Natural Gas) in Tanzania isn’t just a buzzword. It’s a game-changing opportunity that too many people aren’t seeing. But if you understand the landscape, the stakes, and the underrated potential, you’ll realize why LNG is the future of Tanzania’s energy sector.

Let’s get one thing straight: Tanzania is poised to be the next big player in the LNG market. But here’s the kicker—only those with vision, strategy, and deep market understanding will cash in on this explosive growth. Most are focused on the flashy headlines and the big contracts. But the real opportunity? It’s in the fine print.

  1. The Underestimated Potential of Tanzania’s LNG Reserves.

If you’ve been following LNG trends in Africa, you’ve probably heard about Mozambique and Nigeria. But here’s the secret you’re missing: Tanzania’s LNG reserves are more strategic than you think.

Sure, Tanzania isn’t as talked about, but its LNG reserves are vast. The country has made major strides in developing its offshore natural gas reserves—reserves that are set to explode in value over the next decade. But what’s really interesting isn’t just the volume of reserves—it’s the location and proximity to international markets.

Tanzania’s LNG is positioned perfectly to supply East Africa and global markets, especially as international demand for cleaner energy sources continues to surge. The strategic positioning along key maritime routes means Tanzania could easily become a major exporter of LNG to Asia, Europe, and beyond. This is a future-proof market.

  1. The Competition Doesn’t Get It: The Local Energy Demand is Under the Radar

Here’s something most competitors ignore when looking at LNG projects in Tanzania: local demand. Yes, global exports are important, but there’s an untapped local market that few are paying attention to.

Tanzania’s growing industrial base, coupled with increasing demand for energy, creates a massive opportunity for domestic LNG consumption. Industries like manufacturing, mining, and transportation are crying out for reliable, affordable energy sources—and LNG is perfectly positioned to meet this need.

What’s more, Tanzania’s government is actively pushing for more local energy independence. With several energy projects already in the pipeline, and with key infrastructure developments happening, LNG is poised to become the energy backbone of Tanzania’s industrial revolution.

  1. Government’s Shift Towards LNG: The Untold Strategy

Don’t be fooled by the headlines about government red tape and delays. If you dig deeper, you’ll see that Tanzania’s government has been strategically positioning LNG as a priority.

The Tanzanian government is fully committed to LNG development, and they’ve already shown signs of making things easier for investors. There are tax incentives, favorable regulatory frameworks, and new infrastructure projects that make it easier for LNG companies to operate.

Here’s the kicker: most competitors don’t realize that the government is aligning its long-term economic growth strategy around LNG development. In other words, they’re setting the stage for a massive LNG boom—and you need to get in early if you want to benefit.

  1. LNG is More Than Just Energy: It’s a Multi-Billion Dollar Business Ecosystem.

LNG isn’t just about extraction and export. If you want to win big in Tanzania’s LNG space, you need to think about the entire ecosystem around it.

This includes everything from construction of LNG terminals to logistics to distribution networks. There’s a massive business ecosystem growing around LNG, and early movers are already positioning themselves for long-term profits. But here’s the catch: most investors are missing the bigger picture.

While others are only focused on building LNG terminals, the true opportunity lies in creating a full-value chain—from production and transportation to distribution and local consumption. ING, for example, isn’t just focused on the gas itself—they’re building a comprehensive LNG infrastructure that spans across the entire industry. This means long-term dominance in the market.

  1. Technology Is The Real Edge: LNG Infrastructure Is Getting Smarter.

Let’s talk about the hidden advantage that everyone else is overlooking—technology.

The LNG space in Tanzania is evolving fast, and those who embrace new technologies will have a major edge. Whether it’s the smart sensors that can monitor gas pipelines in real-time, AI-driven logistics that streamline distribution, or blockchain for transparent contracts, technology is the differentiator.

Most players are stuck in the past, using outdated systems. But companies that invest in advanced tech solutions will dramatically reduce costs, increase efficiency, and gain the trust of both the government and consumers.

The question is: Are you ready to embrace the future of LNG in Tanzania?

The Bottom Line: The LNG Boom is Coming.

The LNG boom in Tanzania isn’t just a trend—it’s a shift in the country’s economic foundation. And right now, the playing field is wide open. But only the companies who understand the strategic value, the local market dynamics, and the role of technology will come out on top.

If you’re not already looking at Tanzania’s LNG space, it’s time to start. This is one of those rare moments where the early bird gets the billion-dollar worm.

Are you in?

How Africa Can Win the Energy Race: Dr. Dapo Ayoola Breaks It Down.

As Africa’s energy sector evolves, challenges in workforce development, investment dynamics, and renewable energy adoption take center stage. Dr. Dapo Ayoola, Group Managing Consultant at Zenith Professional Training and CEO of the Sub-Saharan Upstream Oil and Gas Summit and Exhibition, shared his thoughts in an exclusive interview with Tanzania Petroleum.

 Building Competence in Africa’s Energy Workforce .

Africa has been active in oil and gas exploration for decades, yet the continent continues to face a shortage of skilled professionals capable of sustaining the industry. Dr. Ayoola elaborated:

“Exploration and production of crude and natural gas is no longer limited to the big four of Libya, Nigeria, Angola, and Algeria. Across the continent, particularly in Sub-Saharan Africa, new technologies have enabled more exploration, discoveries, and production. However, despite these advancements, Africa is yet to develop the manpower necessary to drive the industry on the continent.”

Human capacity development companies like Zenith Professional Training are working to bridge this gap. Dr. Ayoola highlighted their commitment to continually revitalizing training programs to address Africa’s unique needs.

“At Zenith Professional Training, we keep revitalizing our courses to ensure that we support the continent in developing skills across all sectors like business leadership, innovation management, new technologies, as well as energy finance and investment management,” he said.

He stressed the importance of creating specialists who can lead sustainable business growth. “Our curriculums are aimed at supporting African energy specialists to lead innovation and sustainable business growth on the continent as global experts who understand how to turn local challenges into success factors,” Dr. Ayoola emphasized.

Key Challenges for Sub-Saharan Investors.

The energy sector offers significant opportunities, but Dr. Ayoola outlined major hurdles that investors face in the upstream oil and gas sector.

“As I said above, the oil and gas landscape in Africa is changing so fast, and this comes with associated challenges that investors may be worried about,” he stated.

He outlined three primary concerns for potential investors:

 

 

1.National Fiscal Policies: “Frequent changes to industry laws, from licensing processes to taxation and banking create uncertainty for investors. A country’s ease of doing business ranking significantly influences investor decisions on investment destinations.”

2.Scale of Discoveries and Infrastructure Needs: “The level and volume of discoveries in a nation or region affect decision-making because they determine the infrastructure required. Smaller discoveries might deter investors due to the high costs of developing infrastructure.”

3.Specialist Human Capital: “Investors must also be conscious of the scarcity of skilled professionals and plan for training or importing talent.”

 The Role of Renewable Energy.

While oil and gas remain dominant, renewable energy holds tremendous promise in shaping Africa’s energy landscape.

“Notwithstanding continuing investment in oil and gas exploration and production, the role and importance of renewable energy in Sub-Saharan Africa are very exciting,” Dr. Ayoola stated.

He pointed to Africa’s natural advantages in solar, wind, and hydropower, calling for intentional investment in research and technology development. “Renewable energy is the future in a continent that can easily leverage solar, wind, and hydropower. Given the natural gifts of sun, waterways, and wind, the continent should be intentional about research and development of technologies needed to be competitive in renewable energy production and distribution,” he said.

 Shaping the Future.

Despite these challenges, Dr. Ayoola remains optimistic about Africa’s potential. He believes collaboration between governments, investors, and human capacity development companies will be key to unlocking the continent’s energy potential and positioning it as a global leader in the sector.

Nigeria’s CNG Market Set for $10 Billion Growth: Opportunities and Challenges for Investors

Nigeria’s compressed natural gas (CNG) market is expanding, perhaps boosting the local economy, lowering pollution, and creating jobs: The business sector and its networks is expected to grow rapidly over the next ten years, with industry experts projecting its value to reach $10 billion.

The country’s vast natural gas reserves of 208.83  trillion cubic feet (TCF) as of 2023, combined with rising energy costs for power, industrial application, and transportation, position Nigeria as a leader in Sub-Saharan Africa’s CNG sector.

However, navigating this expanding market comes with unique challenges and opportunities. To gain insight into this dynamic industry, Tanzania Petroleum spoke with Tosini Ashimi, the country manager of Bison Compression Limited-Nigeria, a global CNG solutions company.

What is Driving CNG Growth in Nigeria?

According to Tosin Ashimi, three main factors are fueling the adoption and utilization of CNG in Nigeria: economic benefits,environmental considerations and government policies including the removal of the petrol subsidy

 Economic Benefits

“Energy costs are a major concern for industries,” Tosin Ahsimi explained. “For decades, power generation and industrial operations in Nigeria have relied on traditional fuels like diesel. But as diesel prices continue to rise, production costs are becoming unsustainable for many businesses.”

CNG offers a cheaper alternative, helping industries cut costs while maintaining operations. Similarly, vehicle owners are turning to CNG as a more affordable fuel option amid skyrocketing petrol prices.

“Switching to CNG can save businesses and individuals up to 40% compared to diesel. It’s not just about savings—it’s about survival for many companies,” he added.

 Supportive Government Policies.

Recent policy changes have also boosted the sector. “The government’s removal of subsidies on traditional fuels has significantly improved the CNG industry and increased growth, as many companies and car owners have adopted and converted their vehicles to run on compressed natural gas.

Through the Presidential CNG Initiative, the government vehicle conversion incentive program is also offering free or significantly reduced conversions to commercial and public transportation in Nigeria.

Further, waiver of import duties and taxes for all CNG processing equipment as well as conversion kits have made the CNG business a more attractive option for investors,” Ashimi noted.

These incentives have encouraged businesses and individuals to transition to CNG, further driving market growth.

 Environmental Benefits. 

“The world is shifting towards sustainability, and Nigeria is no exception,” Ashimi said. “CNG is a cleaner energy source with significantly lower carbon emissions compared to diesel and petrol.”

This environmental edge is particularly appealing as industries strive to meet global sustainability standards.

 Key Challenges Facing the CNG Sector.

Despite its potential, the CNG industry in Nigeria faces several hurdles, including currency issues, reliance on imports, and limited financing options.

Currency and Import Dependency.

“One of the biggest challenges we face is Nigeria’s currency situation,” Ashimi explained. “Most CNG processing equipment, like Compressors, CNG Tube skids  and conversion kits, are imported from overseas suppliers who only accept payment in foreign currency. But businesses earn in naira, accessing foreign currency has been difficult due to shortage and a volatile exchange rate,”

This reliance on imports not only increases costs but also delays project timelines.

Ashimi believes the solution lies in local manufacturing. “If we can convince CNG equipment manufacturers to set up production in Nigeria, we can reduce our dependency on imports. Local production would cut costs, create jobs, and boost government revenue.”

 Financing Issues.

Another major challenge is the lack of affordable financing options. “CNG projects require significant capital investment, but banks in Nigeria charge extremely high interest rates,” Ashimi said.

This financial barrier forces companies to seek international investors or partnerships, which can complicate project execution.

“To move forward, we need better access to funding. Government and private sector collaboration could help address this gap,” he suggested.

Future Opportunities in Nigeria’s CNG Market.

Despite these challenges, Ahsimi is optimistic about the future of CNG in Nigeria and across Africa.

“Gas is the future of energy in Africa. With abundant reserves, Nigeria is well-positioned to lead the way,” he said.

 Industrial Growth and Job Creation.

CNG’s role in powering industries and vehicles could drive significant economic growth. “As of now, there are over 100,000 vehicles converted from petrol to run on CNG in Nigeria, and this number is growing every months as more conversion centers are being established across the country,” Ashimi noted.

He also highlighted the potential for job creation. “Expanding the CNG sector will create opportunities for small businesses and provide jobs for Nigeria’s youth.”

Competitive Edge Over Electric Vehicles.

While electric vehicles are gaining traction globally, Ashimi believes CNG has greater potential in Africa. “In a continent with abundant natural gas and limited electricity infrastructure, CNG is a more practical and affordable solution,” he said.

Advice for New Investors.

For those looking to enter Nigeria’s CNG market, Ashimi offered practical advice:

Choose Reliable Original equipment manufacture:  Carefully select your OEM, “Work only with reputable manufacturers. There are many substandard products in the market, and using them can lead to costly mistakes and production downtime.”

Focus on Location: “The success of a CNG project often depends on its location. Investors should carefully select sites that offer high demand and easy access to infrastructure.”

Build the Right Team: “A skilled team is essential. Without the right expertise, even the best equipment won’t guarantee success.”

Conclusion

Nigeria’s CNG market is poised for significant growth, offering opportunities for investors willing to navigate its challenges. With supportive government policies, economic and environmental benefits, and abundant natural gas reserves, the sector is set to transform the country’s energy landscape.

However, success will require careful planning, strategic investments, and a commitment to overcoming obstacles. As Ashimi put it, “The future of energy in Nigeria is gas, and those who invest wisely now will reap the rewards.”

 

The $30 Billion Opportunity No One Is Talking About

Sub-Saharan Africa’s energy market is projected to be worth over $30 billion by 2030. In Tanzania alone, the government is heavily investing in LNG projects, rural electrification, and renewable energy initiatives to meet growing demand.

But here’s what most people miss:

Demand Is Localized: Rural areas are desperate for fuel access, while urban centers are rapidly adopting LPG as a cleaner energy alternative.

Timing Is Everything: Government incentives and foreign investments are creating a once-in-a-lifetime window of opportunity.

Complexity Means Profitability: The harder it is for others to enter the market, the more profitable it is for those who do.

The real question is: Are you positioned to take advantage of this growth?

Why Most Entrepreneurs Fail in Tanzania’s Energy Sector

Let’s get real.

Most people who try to break into the energy market either:

  1. Fail to understand local demand, resulting in wasted time and money.
  2. Underestimate regulatory hurdles, leaving them stuck in limbo for months.
  3. Lack a clear strategy for scaling their business and attracting investors.

You don’t need to make these mistakes.

3 Strategies to Win Big in Tanzania’s Energy Market

  1. Go Beyond Fuel Sales

Yes, selling petrol, diesel, or LPG is profitable. But the biggest players maximize their revenue by diversifying:

Ancillary Services: Add, car washes, and even restaurants to your petrol station.

Renewable Energy Solutions: Solar energy projects are gaining traction, especially in off-grid areas.

In Tanzania, forward-thinking entrepreneurs are combining LPG distribution with solar panel installations, creating multiple income streams from a single investment.

  1. Master the Regulatory Landscape

The energy sector is one of the most regulated industries in the world. In Tanzania, you’ll need approvals from EWURA, local authorities, and possibly international partners.

This is where most fail. But with the right guidance, you can not only navigate these regulations but use them to outmaneuver competitors.

  1. Invest in Data and Expertise

The difference between guessing and knowing is everything in business. Smart entrepreneurs don’t just jump into a market—they study it.

At Tanzania Petroleum, we provide detailed feasibility studies and market insights that help our clients:

  • Identify high-demand locations.
  • Predict profitability with precision.
  • Avoid costly mistakes.

Case Study: Turning a Small Idea into Big Profits

Take Francis, a local entrepreneur who wanted to set up a mini LPG distribution center in Dar es Salaam.

Most people told her it was too small to succeed. But here’s what happened:

  1. We conducted a demand analysis and found untapped potential in her neighborhood.
  2. We helped her secure funding by preparing a business plan that wowed investors.
  3. We guided her through regulations, ensuring her business was up and running in record time.

 

The result? Sarah now runs a thriving business, serving over 500 households weekly, and she’s already planning to expand into other regions.

The High-Ticket Strategy That Sets You Apart.

If you want to dominate Tanzania’s energy sector, you need to think bigger than everyone else. Here’s how we help you do it:

Custom Business Plans: Tailored to your goals and designed to secure funding.

Regulatory Support: From EWURA licensing to local permits, we handle it all.

Market Intelligence: Real-time insights into growth rates, regulatory framework, demand, and growth opportunities.

Why You Need to Act Now?

Opportunities in the energy market don’t last forever. As more players enter, competition increases, and profits shrink. The time to act is now.

At Tanzania Petroleum, we don’t just give you advice—we give you results. Whether you’re setting up a petrol station, expanding your LPG business, or investing in renewable energy, we provide the tools and strategies you need to win.

Here’s Your Next Step,

Ready to take the first step toward energy dominance in Tanzania and Sub-Saharan Africa? Let’s chat about your project via +255655376543 or info@tanzaniapetroleum.com.

Establishing the CNG Industry in Nigeria: A Paradigm Shift for Economic Growth and Environmental Sustainability

The adoption of Compressed Natural Gas (CNG) as a viable energy alternative in Nigeria and Africa is long overdue. For decades, the continent has relied heavily on petrol and diesel, neglecting the abundant natural gas reserves that could drive sustainable development. As Uchendu Lucky Onyekachukwu, Managing Director/CEO of Lunkem International Limited, aptly states:

“The adoption of the use of CNG is long overdue in the country and Africa and should have been done 40 years ago. However, the prevailing situation in the country and Africa as a whole has made it imperative for a paradigm shift. Soaring energy costs and their impact on the cost of living are forcing governments to rethink.”

Lucky Onyekachukwu brings two decades of experience in commerce, trade, and investment across Nigeria and parts of Africa. His insights underscore the urgency of transitioning to CNG, particularly as the nation grapples with the economic fallout of fuel subsidy removal.

CNG: The Strategic Option for Nigeria

Nigeria’s abundant natural gas reserves are a significant advantage, positioning the nation for a strategic shift toward CNG. According to Lucky Onyekachukwu:

“Strategically, the gas option is the most viable for the nation now, considering all.”

This transformative initiative targets the widespread adoption of CNG-fueled vehicles across Nigeria. It aims to reduce energy costs, ease the burden of high transportation expenses, and foster local manufacturing, assembly, and job creation.

Key Features of the CNG Investment Roadmap.

The roadmap for the CNG industry’s development in Nigeria includes several transformative elements. As Uchendu Lucky Onyekachukwu highlights:

“The establishment of the CNG industry will facilitate the provision of workshops across all geopolitical zones and states with essential kits and comprehensive training for newly employed staff, thus creating new opportunities for technical skill development and employment for Nigerians.”

Other key features include:

  1. Empowering Workshops for Seamless Transition

The initiative includes nationwide sensitization workshops to communicate the long-term benefits of CNG adoption. A robust network of workshops will ensure vehicle owners have access to conversion kits, technical training, and maintenance services, fostering smooth transitions and sustainable employment opportunities.

  1. Mass Transit Transformation

The roadmap envisions stakeholder-operated intrastate mass transit systems built on CNG to reduce transit costs significantly. It also supports states and private operators in onboarding new CNG buses via:

Conversion and retrofitting of existing buses.

New purchases financed through innovative asset finance programs.

  1. Incentives for Investors.

To encourage investment, the government will provide incentives for CNG processing, distribution, and utilization. This will promote partnerships and build the infrastructure necessary for widespread adoption.

  1. Bolstering Local Manufacturing

CNG-enabled vehicles will not only reduce dependency on imported petrol but also enhance local assembly capabilities, create sustainable jobs, and stimulate Nigeria’s automotive manufacturing sector.

  1. Environmental and Economic Benefits

The CNG industry will reduce carbon emissions, foster energy security through domestic natural gas utilization, and alleviate the economic burden of high transportation costs for millions of Nigerians.

Economic and Social Impact.

The comprehensive adoption strategy targets over 11,500 new CNG-enabled vehicles and 55,000 conversion kits for existing petrol-dependent vehicles. With a focus on mass transit systems and student hubs, this initiative aims to reduce transit costs for the general populace while creating jobs and technical skills development.

Lucky Onyekachukwu emphasizes:

“The development of new stakeholder-operated intrastate mass transit systems built on CNG will significantly reduce transit costs for the general populace in the immediate term.”

 

The CNG initiative represents a pivotal moment for Nigeria and Africa. By leveraging its abundant gas reserves, Nigeria can transition toward a cleaner, more sustainable energy future, stimulate economic growth, and create jobs. This initiative is not only a response to current challenges but also a long-term solution to reduce energy costs, protect the environment, and enhance the quality of life for millions.

 

As Uchendu Lucky Onyekachukwu asserts:

“To establish this industry is also very good for fostering a cleaner environment by reducing carbon emissions and promoting energy security through the utilization of domestic natural gas resources.”

 

The time for Nigeria and Africa to embrace CNG is now—ushering in an era of energy transformation and economic resilience.

 

Key Strategies for Investing in Fuel and Energy in Tanzania and Africa

Investing in the fuel and energy sectors in Tanzania and Africa is one of the smartest moves entrepreneurs and investors can make.

These industries are filled with opportunities that promise significant growth and high returns.

But here’s the catch: this isn’t an easy market to navigate. Without the right strategy, you risk losing both time and money.

So, how can you ensure your investment is strategic and successful in this competitive, high-stakes market?

Here are the key strategies you need to succeed:

  1. Identify High-Growth Markets.

The fuel and energy sector is vast. From retail fuel stations and LPG to renewable energy, lubricants, waste oil, bulk fuel importation, and even exploration, the possibilities are endless. But not every segment will be a fit for your goals.

Here’s what you need to focus on:

Market Size and Growth Rates

Start by assessing the size of the market and its growth trajectory. Analyze historical data and future projections to gauge revenue potential. Which markets are thriving? Which ones are just getting started but show promise?

Economic Indicators.

Pay attention to broader economic signals like energy demand, fuel consumption, and employment rates. These indicators will help you understand the overall market potential.

Industry Trends

Dive deep into what’s trending in the energy world. Are more people switching to renewable energy? Is there a rise in LPG usage? Understanding these trends can help you focus on sectors with high growth potential.

  1. Conduct Due Diligence.

Here’s a harsh truth: without proper due diligence, you’re setting yourself up for failure. Before you invest, take the time to understand the market inside out.

Market Analysis

Conduct a detailed analysis of your target market. This includes market size, growth potential, competitive dynamics, consumption patterns, and demand trends. Know what you’re walking into before you commit.

Regulatory Environment

In Tanzania, the energy sector is highly regulated. Learn the rules, understand the compliance requirements, and identify any potential legal hurdles. This could save you from expensive mistakes down the line.

Operational Assessment

  • Evaluate the operational side of your investment or project.
  • Do you have a reliable supply chain?
  • What about production capacity and distribution networks?
  • Are you prepared for financial and manpower requirements?

Understanding these aspects ensures you’re prepared for both opportunities and challenges.

Challenges to Avoid When Investing in Fuel and Energy.

Even with a solid strategy, pitfalls can derail your success. Here are some common challenges to avoid:

  1. Lack of Market Research

Entering a market without understanding its dynamics is a recipe for disaster. Research is non-negotiable.

  1. Overlooking Regulatory Compliance.

Failing to comply with local laws and regulations can lead to hefty fines—or worse, shutting down your operations.

  1. Underestimating Competition.

The fuel and energy sectors are fiercely competitive. If you’re not offering something better or different, you’ll struggle to gain traction.

  1. Ignoring Operational Challenges

From supply chain issues to resource shortages, operational hiccups can cripple your business if you’re not prepared.

Final Thoughts.

Investing in the fuel and energy sectors in Tanzania and Africa offers enormous potential—but only if you approach it strategically.

Focus on identifying high-growth markets, conduct thorough due diligence, and be prepared for the challenges. With the right strategy, you can turn this high-stakes market into your biggest success story.

Don’t leave your investment to chance. Plan strategically. Execute flawlessly. And watch your vision come to life.

Ready to take the first step? Start with a detailed market analysis today. The energy market waits for no one—act now

The Rising Opportunities in LPG Distribution in Tanzania and Africa

The energy sector in Africa is witnessing a monumental shift as countries seek cleaner, more sustainable solutions to meet the growing energy needs of their populations.

Among the rising stars in this transition is Liquefied Petroleum Gas (LPG), which is emerging as a vital energy source for both households and businesses across the continent.

With its numerous benefits, LPG is slowly replacing traditional cooking fuels like charcoal and firewood, especially in urban areas. This growing trend presents incredible opportunities for those looking to enter the LPG distribution business in Tanzania and across Africa.

In this blog, we’ll explore why LPG distribution is a promising business opportunity, the unique opportunities in this sector, the challenges that come with it, and the steps to get started.

Why is LPG Distribution Important in Tanzania and Africa?

  1. Growing Demand for Clean Energy

In Africa, more than 80% of the population relies on biomass (charcoal, firewood) for cooking, contributing to significant health and environmental challenges. Indoor air pollution from burning these fuels leads to respiratory diseases and environmental degradation. LPG, a cleaner and more efficient energy source, offers a healthier alternative.

As more people in Africa become aware of these health risks and seek modern, safer energy sources, LPG is increasingly seen as the energy of choice. Additionally, governments and NGOs across the continent are pushing for the adoption of cleaner cooking solutions to meet global climate and health goals. This makes LPG distribution an essential service, creating a robust market for suppliers and distributors.

  1. Economic and Environmental Benefits

LPG not only provides a cleaner cooking solution but also offers economic advantages. It is often cheaper than charcoal in the long run and offers better efficiency. For businesses, LPG is increasingly used in industries for cooking, which contributes to economic growth. For individuals, it provides a more sustainable way to cook, saving money and improving quality of life.

Opportunities in LPG Distribution in Tanzania and Africa

  1. Expanding Urban Market Demand

With urbanization rapidly increasing, more people are moving into cities and adopting modern lifestyles.

Urban dwellers are more likely to embrace LPG as a cleaner, more efficient energy source for cooking, which makes cities and towns a hotbed for LPG distribution opportunities. Tanzania, with its growing population and expanding cities, is an attractive market for LPG distributors.

  1. Rural Market Potential

While urban areas are already benefiting from LPG, rural regions remain largely underserved. However, as infrastructure improves and LPG awareness spreads, rural areas are poised for growth. The demand for LPG in rural areas is gradually increasing, especially with the ongoing push for cleaner alternatives. This presents an opportunity for distributors to establish themselves in these underserved areas.

  1. Government Incentives and Policy Support

Governments across Africa, including Tanzania, are introducing policies and programs to promote LPG adoption. This includes subsidies, tax breaks, and incentives for businesses and consumers. These government initiatives are making LPG more affordable and accessible, further driving demand and creating more opportunities for distributors.

4.Environmental Sustainability Initiatives

As global and local environmental concerns rise, businesses that focus on sustainability are being encouraged. LPG is seen as a cleaner alternative to biomass fuels, which can help businesses align with sustainability goals. Distributors who position LPG as an eco-friendly energy option can tap into the growing demand for green energy solutions.

Challenges in LPG Distribution in Tanzania and Africa

While the LPG distribution market presents lucrative opportunities, several challenges must be addressed:

  1. Logistics and Infrastructure Challenges.

In many parts of Africa, including Tanzania, infrastructure is still developing. Poor roads, limited storage facilities, and lack of transportation networks can make it difficult to distribute LPG efficiently. This results in higher transportation costs and delays, impacting the overall profitability of LPG distribution businesses.

  1. High Initial Capital Investment.

Starting an LPG distribution business requires significant investment in storage facilities, transportation (trucks and cylinders), safety equipment, and regulatory compliance. While the market is profitable in the long run, the high upfront costs can be a barrier for many entrepreneurs.

  1. Safety and Regulatory Compliance.

LPG is a flammable substance, and safety is a major concern in its distribution. Strict regulations around the storage, transportation, and handling of LPG must be adhered to. In addition, obtaining the necessary licenses and approvals from regulatory bodies like the Energy and Water Utilities Regulatory Authority (EWURA) in Tanzania can be a time-consuming and complex process.

  1. Market Competition.

The LPG distribution sector is becoming increasingly competitive as new players enter the market. Established companies often have stronger financial backing and more experience, making it harder for new entrants to gain a foothold. Distributors need to find unique ways to differentiate themselves and build customer loyalty.

  1. Public Awareness and Education.

Despite the growing demand for LPG, many communities—especially in rural areas—are still unaware of its benefits. Educating the public about the health, environmental, and economic advantages of LPG can take time and resources, which might delay market penetration.

Steps to Start an LPG Distribution Business in Tanzania and Africa

  1. Conduct Market Research

Before diving into the LPG distribution business, it’s essential to understand the market dynamics. Research the demand for LPG in different regions, assess the level of competition, and identify your target market (households, commercial businesses, or both).

  1. Create a Business Plan

A well-thought-out business plan is crucial for success. Outline your business goals, define your target market, and develop a strategy for sourcing, storing, and distributing LPG. Include financial projections, pricing strategies, and plans for expansion. A solid business plan will help attract investors and guide your decisions as you grow.

  1. Secure Licensing and Regulatory Approvals

Ensure that you comply with all safety and regulatory standards required by the government and relevant authorities, such as EWURA in Tanzania. You will need to obtain licenses for the storage, transport, and sale of LPG, as well as undergo safety training for handling the product.

  1. Invest in Infrastructure

You’ll need to invest in storage facilities (cylinders and bulk tanks), transportation (delivery trucks), and a network of distribution points or retail outlets. Ensure that these facilities comply with safety standards and regulations.

  1. Build Relationships with Suppliers

Partner with LPG producers and suppliers to ensure a steady and reliable source of gas. Depending on your location, you may work directly with international producers or local refineries. Negotiate pricing, delivery schedules, and volume commitments to establish a sustainable supply chain.

  1. Focus on Customer Education

Educating your customers on the benefits of LPG and how to use it safely is vital for customer retention. Offering training sessions, providing clear instructions, and engaging in community outreach can help build trust and loyalty.

  1. Build a Strong Brand and Marketing Strategy.

In a competitive market, it’s important to build a strong brand that resonates with your target customers. Focus on messaging that emphasizes the health, environmental, and cost-saving benefits of LPG. Utilize both traditional and digital marketing to raise awareness and attract new customers.

Read also:A Sample Business Plan for Starting an LP Gas (Cooking Gas) Distribution/Wholesale and Retailing Business in Tanzania: A Business Plan for one Quick Gas Limited

Conclusion

The LPG distribution sector in Tanzania and across Africa holds tremendous growth potential. As urbanization increases, rural areas remain underserved, and government policies support cleaner energy, the demand for LPG is set to rise.

Despite the challenges in logistics, capital investment, and market competition, the opportunities far outweigh the risks. By focusing on infrastructure, safety, customer education, and effective marketing strategies, new entrants to the LPG distribution market can carve out a profitable and sustainable business. Now is the time to seize this opportunity and be part of Africa’s energy revolution.