The Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, has disclosed that over the past decade, global oil and gas investors have allocated $80 billion elsewhere, bypassing Nigeria.
She made this statement on Monday during her remarks at the Nigeria International Energy Summit 2025, held in Abuja.
The summit gathered energy stakeholders and government officials to reflect on Nigeria’s achievements in the energy sector in 2024 and their implications for Africa’s broader energy security and transformation.
FG’s move to boost investor confidence
- Regarding the oil and gas sector, Verheijen stated that the government has critically examined Nigeria’s historical challenges in attracting substantial greenfield investments.
“Over the past decade, global oil and gas investors allocated $80 billion elsewhere, largely bypassing Nigeria,” she stated.
- She explained that the reason for this economic bypass was clear, highlighting that investors require confidence in a stable regulatory environment and a competitive fiscal framework.
- In response, she said President Tinubu, in February 2024, issued three landmark directives—Directives 40, 41, and 42—to dismantle key investment barriers and enhance Nigeria’s competitiveness.
- According to her, these directives have significantly improved Nigeria’s investment climate, positioning the country among the top quartile of 14 competing oil and gas investment destinations.
“The results were swift and tangible: by mid-2024, the Ubeta Final Investment Decision (FID) was secured through a Total joint venture. By year-end, Shell and its partners approved the Bonga North FID. Looking ahead, additional FIDs are anticipated in 2025, further reinforcing investor confidence,” she added.
Oil and Gas Sector Renaissance
Furthermore, she disclosed that in the upstream sector, President Tinubu has set ambitious targets: “restoring oil production to 2.06 million barrels per day (bpd) in the near term and achieving 4 million bpd by 2030.”
- She stated that the groundwork laid in 2024 has been instrumental in positioning Nigeria to meet these objectives, highlighting that a critical aspect of the federal government’s strategy is in the enhancement of security in oil-producing regions.
“Through a data-driven security framework, implemented in collaboration with operators, the Office of the National Security Adviser, and the Ministry of Defence, we have facilitated a 500,000-bpd increase in oil production since the inception of this administration,” she stated.
Turning Point
According to the government official, the year 2024 marked a turning point in Nigeria’s energy landscape, with the country securing three out of Africa’s four Final Investment Decisions (FIDs), valued at over $5.5 billion.
“Our nation solidified its position as a premier destination for deep offshore oil and gas investments, approved its first deepwater FID in over a decade, facilitated five major asset acquisitions, revived two domestic refineries, and commenced petrol production at Africa’s largest refinery,” she added.
- She stressed that these FIDs were not a matter of chance but the result of deliberate strategy and decisive leadership embodied in President Bola Ahmed Tinubu’s administration.
- She explained that the strategic objectives adopted by the federal government include the removal of wasteful energy subsidies, the restoration of fiscal revenues through increased oil and gas production, the strategic deployment of gas for economic diversification, and the rapid expansion of on-grid electrification.
- Regarding the power sector, she explained that a key initiative adopted by the government is the Presidential Metering Initiative (PMI), which consolidates all metering programs into a unified framework, targeting the deployment of seven million smart meters.
“This initiative is designed to eliminate the inefficiencies of estimated billing, enhance revenue collection by electricity distribution companies (Discos), and significantly improve service delivery,” she added.
- To secure the long-term financial stability of the power sector, the official said the government is actively addressing outstanding debts owed to gas suppliers and generation companies.
“Simultaneously, we are implementing a gradual transition to cost-reflective tariffs that balance affordability with financial sustainability. This approach ensures the sector remains self-sustaining while safeguarding the most vulnerable through a well-targeted subsidy system,” she added.
- On Nigeria’s role in Africa’s energy future, she maintained that the country’s success in securing major investments, expanding domestic refining capacity, and enhancing electrification will have far-reaching implications for regional energy security, intra-African trade, and industrialization.
What You Should Know
The official’s latest remarks come days after she outlined efforts and plans of the federal government to achieve Nigeria’s ambitious target of increasing oil production to 4 million barrels per day by 2030.
- She explained that the President had taken a hands-on approach to attracting international oil companies (IOCs) and other investors back into Nigeria’s oil sector.
- According to OPEC data, countries with higher oil production include Saudi Arabia, Iran, Iraq, Kuwait, and the United Arab Emirates.
- Saudi Arabia is the highest producer with about 9 million bpd, while Nigeria remains the highest in Africa.
- Non-OPEC members with high oil production include the United States of America, Russia, China, Canada, and Brazil.
The US leads this group with an output of about 13 million bpd, followed by Russia (9 million bpd), Canada (5.5 million bpd), China (4.7 million bpd), and Brazil (3.6 million bpd).