President Bola Tinubu on Tuesday, gave fresh assurance to global oil and gas investors of the federal government’s resolve to provide an enabling environment for them to invest in the sector and easily repatriate their investments when necessary.
The president vowed to address all bottlenecks standing against investments and operations in the nation’s oil and gas industry, promising investors of providing them with attractive fiscal frameworks and business-friendly regulations.
Tinubu gave the assurances while delivering his keynote address at the official opening ceremony of the 8th Nigeria International Energy Summit (NIES) in Abuja themed: “Bridging Continents: Connecting Investors Worldwide with Africa’s Energy Potential.”
Represented at the event by the Minister of State for Finance, Dr Doris Uzoka-Anite, Tinubu expressed his confidence in Nigeria’s potential to be a global powerhouse in the energy sector, driven by strategic reforms, innovative policies and steadfast commitment to sustainable development.
“As many of you are aware, we are currently implementing a series of comprehensive reforms in our fiscal and tax policies. These reforms are designed to create a more business friendly environment and attract both local and international investments by simplifying our tax regulations, offering incentives and ensuring a more transparent and predictable fiscal framework.
“We aim to remove barriers to entry and support the growth of businesses in Nigeria. These measures will not only make it easier for companies to invest and operate in our country, but also stimulate economic development, create jobs and enhance overall prosperity for our nation.
“Ladies and gentlemen, the investment landscape in Nigeria’s energy sector is brimming with opportunities driven by a favourable regulatory environment and strategic initiatives, aimed at attracting all kinds of investors,” the president said.
Highlighting some policy interventions taken by the government to attract investment, the president mentioned that in the oil and gas exploration and production sector, Nigeria offers lucrative opportunities for investors to explore and develop new oil blocks.
He said the government’s commitment to improving security in oil and gas producing regions and streamlining regulatory processes has created a conduciveenvironment for investment.
Tinubu added: “In the area of renewable energy, our commitment to diversifying our energy mix presents significant opportunities in the renewable energy sector. Investors can export solar energy projects, giving Nigeria’s abundant solar resources, as well as green and hydro power projects.”
In his address, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, hinted that a company, whose name he did not disclose, will be announcing a $20 billion Final Investment Decision (FID) on an oil and gas projectin the next few months.
He said Nigeria’s oil and gas landscape has experienced transformation under the current administration, noting that Nigeria is now ready for business and willing to attract the needed investments under Tinubu.
He again clarified that no International Oil Company (IOC) was exiting Nigeria contrary to some narratives, pointing out that the multinationals were only leaving the onshore and shallow water terrains and moving into the offshore.
In his remarks, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC), Mele Kyari, said that the world recognisesAfrica as the next destination of providing greater support to the global energy market, recognising Nigeria’s position as the largest producer of oil and gas in the continent.
Kyari, who noted that Nigeria stands as Africa’s largest producer of oil and gas, playing a pivotal role in the global energy market, affirmed that oil will remain a critical component of the global energy mix well into 2025, contributing over 39 per cent of global oil demand as the world will require more than 100 million barrels of oil daily.
“At NNPC, we view gas not merely as a transitional fuel, but as a vital and sustainable alternative for the future. Currently, over 70 per cent of Nigeria’s population lacks access to clean cooking fuel, and more than 50 per cent remains without reliable access to electricity. These gaps present a significant opportunity for gas to play a transformative role,” Kyari noted.
He explained that it was based on these realities that Nigeria decided to prioritisethe development of the essential infrastructure, regulatory frameworks, and fiscal incentives needed to harness gas as a key solution for improving energy access and driving national development.
Underscoring the immense opportunities Africa holds in the energy sector, Kyarisaid gas infrastructure development remains critical to driving a trillion-dollar economy in Nigeria.
“Nigeria is poised to take a leading role in unlocking the continent’s full potential in terms of natural gas. The NNPC is leading the charge in delivering gas to domestic gas-based industries and power plants, while building the needed infrastructure to ultimately bolster economic growth,” Kyari stated.
While attributing the reforms in the industry to the right leadership which has created fiscal terms for gas, Kyari stressed that many FIDs announced were as a result of Tinubu’s executive order on oil & gas, which he said provided fiscal incentives for ease of doing business.
“Today, investors are increasingly recognising that investing in Nigeria, particularly in the oil and gas sector, offers not only the potential for solid returns but also a stable fiscal environment that promises long-term profitability,” Kyari said.
Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, while speaking, highlighted the progress made in gas infrastructure development, policy reforms, gas utilisation, and domestic initiatives, marking a remarkable turnaround for the sector.
“The federal government is attracting investment in LNG, CNG, and gas-to-chemicals, and by fostering a business-friendly environment, Nigeria is building a sustainable gas ecosystem that drives industrialisation, job creation, and energy security, ensuring a cleaner and prosperous future,” he stated.
The gas minister who was also on the ministerial panel during the event reaffirmed the government’s commitment to the ‘Decade of Gas’ initiative, launched in 2021, which aims to position Nigeria as a leading gas-powered economy by 2030 through infrastructure expansion, increased domestic utilisation, and export growth.
Key projects, he said, include pipeline development, gas-based industries, and gas-to-power initiatives.
He said in response to the 2023 fuel subsidy removal and subsequent petrol price surge, the government initiated a nationwide Compressed Natural Gas (CNG) programme to provide cost-effective and environmentally friendly transportation alternatives.
“With over 100,000 vehicles targeted for conversion and a $200 million investment in CNG infrastructure, this programme is crucial in reducing transportation costs and promoting energy sustainability,” Ekpo said.
The Obrikom, Obiafo, Oben (OB3) and Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline projects remain flagship initiatives in Nigeria’s national gas expansion drive, according to Ekpo. He said the AKK pipeline, spanning 614 kilometres, is expected to enhance gas supply to key industrial and commercial hubs across Nigeria.
“With an expected completion date of 2025, this $2.8 billion initiative will stimulate industrialisation, create jobs, and attract investments in manufacturing and power generation,” he explained.
Chairman of the Independent Petroleum Producers Group (IPPG) and Waltersmith, Mr. Abdulrazak Isa, assured the federal government and other stakeholders that his members companies that acquired Shell, TotalEnergies, Exxonmobil, Eni and Equinor’s onshore assets will optimise the oil blocks in a way that benefits the country.
According to Isa, with the conclusion of the of IOC divestment, IPPG members now have a national responsibility and will be at the forefront of the nation’s quest for industrialisation, by significantly investing across industry value chain in order to stimulate a wide array of strategic sectors, from petrochemicals to agriculture, power to manufacturing, construction to transportation and so many more sectors.
He said the divestment also meant that indigenous exploration and production companies’ contribution to national oil and gas production was now about 50 per cent and expected to increase over time.
“Let me once again, assure all stakeholders that the transferred assets are in safe hands. As we march towards this new era, we will act as worthy stewards, upholding global best practices and operational excellence”, Isa assured.
