Speaking at the African Energy Week in Cape Town, Olu Verheijen, Special Adviser to President Bola Tinubu on Energy, called on global investors to tap into Nigeria’s rapidly evolving energy sector, highlighting untapped potential, recent reforms, and new fiscal incentives aimed at boosting capital inflows.
In her address to a diverse audience of energy stakeholders, Verheijen pointed out that Nigeria, despite its vast oil and gas reserves, has historically underperformed in production. “Despite our abundant endowments, we have underperformed against our potential,” she said, noting that while Nigeria has more oil reserves than Brazil, the latter produces 131% more oil due to better investment environments and operational efficiencies. She cited that since 2016, Nigeria has attracted only 4% of total African oil and gas investments.
Verheijen emphasized that the Tinubu administration is taking proactive steps to reverse this trend. She outlined a series of new measures, including the introduction of fiscal incentives specifically designed for deep offshore and non-associated gas projects. “This is the first time Nigeria is outlining a fiscal framework for deepwater gas since exploration in the basin commenced in 1991,” she explained. The government is also collaborating with the National Security Adviser to improve security measures in oil-producing regions.
In addition, Verheijen shared that streamlined regulatory processes and reduced project timelines are central to the administration’s reforms. “Our target is to shorten contracting timelines from an extensive 38 months to just 135 days and to eliminate the 40% cost premium that currently exists within the Nigerian petroleum industry,” she added.
Further plans include a focus on midstream and downstream investments through the Presidential Gas for Growth Initiative. These efforts support growth in Compressed Natural Gas (CNG), Liquefied Petroleum Gas (LPG), and Electric Vehicles, aiming to replace gasoline and diesel in heavy transport, decentralized power generation, and cooking. “We have introduced fiscal incentives to catalyze investments in the midstream and downstream sectors,” Verheijen said.
The adviser revealed that Nigeria has already unlocked over $1 billion across the energy value chain, with further major investments anticipated by mid-2025. She also mentioned efforts to transfer onshore and shallow-water assets to capable local companies, while supporting International Oil Companies’ transition into deep offshore and integrated gas projects.
Beyond oil and gas, Verheijen highlighted President Tinubu’s vision for a stronger power sector. Plans are underway to expand electricity access, with a target to ensure 20 hours of electricity daily by 2027 for consumers in urban areas and industrial hubs. Other initiatives include deploying seven million smart meters and expanding off-grid solutions for remote areas, aiming to improve revenue collection and reduce losses.
Verheijen also acknowledged recent economic reforms, such as the removal of petrol subsidies and the liberalization of foreign exchange, as pivotal in making Nigeria a more attractive destination for investment. “Under President Tinubu’s leadership, Nigeria is championing reforms to unlock its vast economic potential and create jobs,” she said, inviting international investors to be part of Nigeria’s growth journey.
As Nigeria moves forward with these energy and economic reforms, Verheijen expressed optimism that the country is on the path to achieving unprecedented growth, opening doors to vast opportunities in the energy sector and beyond.
