Nigeria seeks to close energy gap for 100 million people

•As $550m upstream gas project kicks off

Major energy reforms introduced in Nigeria since June 2023 have focused on improving energy security, attracting investment and deepening collaboration with key partners like the United States government.
Special Adviser to the President on Energy, Olu Verheijen stated this in remarks delivered on Thursday 12 September 2024 at a luncheon organized as part of the inaugural US-Nigeria Strategic Energy Dialogue, hosted by the US State Department, in Washington, DC.
The Dialogue was established in June 2023 to create a platform for the US and Nigerian governments and private sector to deepen bilateral cooperation to advance the implementation of shared energy and climate action ambitions. Nigeria seeks to create a robust regulatory framework and attract new investments for the production of gas for power, transportation and clean cooking.
“I cannot overstate the importance of our longstanding relationship with the US and this inaugural dialogue. The goal of this dialogue is to for us to jointly proffer solutions that will close the energy access gap for close to 100 million Nigerians who still lack reliable power,” said Verheijen. “We want existing and potential partners to better understand our areas of priority so that our collaboration can be better targeted, and with tangible outcomes.”
“The inaugural U.S.-Nigeria Strategic Energy Dialogue [sets] the stage for strengthened energy collaboration between the United States and Nigeria. Together, we’re advancing shared energy security, decarbonization, and economic growth goals,” said Geoffrey R. Pyatt, Assistant Secretary of the State Department’s Bureau of Energy Resources (ENR).
Verheijen highlighted key reforms that the government of Nigeria has launched to improve the viability of the gas-to-power value chain since President Bola Ahmed Tinubu assumed office. These include initiatives to improve cash flows in electricity distribution through smart metering and the payment of outstanding debts owed investors, and to reduce carbon emissions from gas production.
To support the reform efforts, President Bola Ahmed Tinubu has issued five new executive orders aimed at providing fiscal incentives for investment and reducing the cost and time of finalizing and implementing contracts to develop and expand gas infrastructure. The directives aim to immediately unlock up to $2.5 billion in new oil and gas investments in the country.
Verheijen added that the reforms have since started yielding results, with the recent announcement of Final Investment Decision (FID) on a new $550 million upstream gas project that will deliver 350 million standard cubic feet of gas per day when operational.
She acknowledged the support of financing and technical partners like the United States government, the World Bank and the African Development Bank towards Nigeria’s ambitious goals to expand electricity access and reliability through grid and off-grid solutions.