FG unveils reforms to close energy gap for 100 million Nigerians

Nigeria has beamed light on its planned energy reforms aimed at enhancing energy security and attracting investment, with the ambitious goal of closing the energy access gap for 100 million citizens.

Olu Verheijen, Special Adviser to the Nigerian President on Energy, laid out the plan at the inaugural US-Nigeria Strategic Energy Dialogue which held in Washington.

According to a Presidency statement made available to the media on Tuesday, the event marked a significant step in advancing bilateral cooperation between the two nations in energy and climate action.

The presidential aide emphasized the importance of Nigeria’s partnership with the United States at the event.

She outlined the reforms that have been introduced since President Bola Tinubu took office in June 2023, including five new presidential directives aimed at cutting costs and reducing delays in contracting for gas projects.

These directives are projected to unlock up to $2.5 billion in new oil and gas investments.

Verheijen also announced a major milestone—the Final Investment Decision (FID) on a $550 million upstream gas project, set to produce 350 million cubic feet of gas per day, further solidifying Nigeria’s commitment to utilizing gas as a key component of its energy transition strategy.

“We see resilient demand for gas through the energy transition as it is a readily available, cost-effective backup to renewables while cutting emissions by half immediately,” she noted.

The reforms also include measures to improve the cash flow in Nigeria’s electricity distribution network through smart metering and debt payments, as well as initiatives to reduce carbon emissions in gas production.

These efforts are in line with the administration’s commitments under the Paris climate agreement.

According to the statement, the US delegation, led by Assistant Secretary of State Geoffrey R. Pyatt, praised the dialogue as a new chapter in US-Nigeria cooperation, focusing on energy security, decarbonization, and economic growth.

Pyatt also announced the launch of the Clean Energy Alliance of Nigeria (CLEAN), a US initiative designed to mobilise investment in Nigeria’s clean energy sector.

The two-day dialogue, which featured government and private sector stakeholders, underscores the deepening partnership between the US and Nigeria as they work together to tackle shared energy and climate challenges.