The Federal Government’s strategic reforms in the energy sector have catalyzed $700 million in investments in Compressed Natural Gas (CNG) and electric vehicles, underscoring Nigeria’s transition toward sustainable energy.
The Special Adviser on Energy to President Bola Tinubu, Olu Verheijen, attributed this success to the President’s policy framework designed to attract investment in electric mobility, Liquefied Petroleum Gas (LPG), and gas infrastructure. The reforms, she emphasized, reflect Tinubu’s commitment to ensuring Nigeria’s energy is abundant, affordable, and sustainable.
In a detailed review, Verheijen highlighted that Tinubu’s administration, within weeks of inception in May 2023, established a dedicated Energy Office to spearhead reforms aimed at positioning Nigeria as a global investment hub. These initiatives align with the Petroleum Industry Act and the new Electricity Act and focus on four strategic objectives which are redirecting funds from petrol subsidies to critical infrastructure and social investments, boosting oil and gas production to improve fiscal revenue, expanding gas use for transportation, electrification, and manufacturing, attracting private-sector investment to scale up electricity generation and distribution.
To improve Nigeria’s competitiveness in attracting energy investments, the government implemented three presidential directives (Directives 40, 41, and 42) in early 2024. These directives established a competitive fiscal framework for gas production and exploration, alongside incentives for electric mobility and midstream infrastructure development.
She said, through these policies, Nigeria now ranks among the top investment destinations globally, moving to the top quartile of 14 indexed countries for deep offshore projects.
“The country accounted for three out of the four Final Investment Decisions recorded across Africa in 2024, with a combined value exceeding $5bn. These all happened within 10 months of the presidential directives.
“Total and Nigerian National Petroleum Company Limited committed to investing $500m in a gas project on the Ubeta field that was discovered in 1965; while Shell, Total, ENI, and Exxon delivered the standout highlight of 2024, a $5bn commitment to the Bonga North project, which will increase Nigeria’s production by 110,000 barrels a day.
“Across the energy transition value chain CNG, LPG and electric mobility we have already identified $700 million of ongoing and prospective investment. We expect more investment decisions in the months ahead,” Verheijen noted.
The administration’s focus on gas as the backbone of Nigeria’s energy future has already attracted $700 million in ongoing and prospective investments in CNG, LPG, and electric mobility. Verheijen explained that these investments are not just about energy security but also about economic development, creating jobs, technical expertise, and foreign exchange earnings.
In the power sector, the launch of the Presidential Metering Initiative in 2024 marked a turning point. With a target of deploying 5 million smart meters by 2027, the initiative attracted N700 billion in investments to bridge Nigeria’s metering gap and improve revenue assurance across the value chain.
Verheijen highlighted the administration’s resolve to settle legacy debts, introduce cost-reflective electricity tariffs, and protect vulnerable Nigerians through targeted subsidies. These measures aim to create a foundation for reliable and affordable power, boosting entrepreneurship, job creation, and economic growth.
