By Zara Maisango
In a compelling address at the African Energy Week in Cape Town, Olu Verheijen, Special Adviser to President Bola Ahmed Tinubu on Energy, issued an open invitation to global investors, emphasizing Nigeria's readiness for major transformation in the energy sector. She pointed out the country’s vast but underutilized oil and gas potential and stressed recent reforms aimed at creating an attractive environment for international capital.
“Nigeria has historically underperformed in oil and gas production,” Verheijen noted, comparing the country's output to that of Brazil. Despite Brazil holding just 30% of Nigeria’s oil reserves, it produces 131% more due to higher levels of investment. Since 2016, Nigeria has captured only 4% of Africa’s oil and gas investments, while international oil companies (IOCs) invested over $82 billion in deepwater projects outside Nigeria.
The Tinubu administration, aware of these challenges, has enacted reforms designed to attract investment, especially in deepwater oil and non-associated gas. For the first time, Nigeria has outlined fiscal incentives specifically for deepwater gas, aiming to boost investor confidence. Verheijen underscored that her office is collaborating with the National Security Adviser to implement security directives that enhance operator safety, an initiative informed by insights from field operators.
In addition, Verheijen emphasized streamlining regulatory processes, aiming to reduce project approval timelines from 38 months to just 135 days. She also highlighted incentives to stimulate growth in midstream and downstream sectors, such as Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG), and support for electric vehicle demand through the Presidential Gas for Growth Initiative.
The Tinubu administration's reforms have unlocked over $1 billion across Nigeria's energy value chain, with more significant investments anticipated by mid-2025, including a multibillion-dollar deepwater project—the first in over a decade.
Beyond oil and gas, Verheijen outlined efforts to revamp Nigeria's power sector, with plans to provide reliable electricity to 86 million underserved Nigerians. The government aims to deploy seven million smart meters, improve revenue collection, and expand off-grid solutions to remote areas. By 2027, Nigeria intends to ensure urban areas and industrial hubs receive 20 hours of electricity daily.
With additional macroeconomic reforms such as fuel subsidy removal and currency liberalization, Verheijen assured the international audience that Nigeria is on a path to unprecedented growth. "Under President Tinubu’s leadership, Nigeria is championing reforms to unlock its vast economic potential and create jobs,” she stated, inviting foreign partners to join Nigeria’s transformative journey.
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