Executive Order: Tinubu eyes $2.5bn investments
President Bola Tinubu
President Bola Tinubu has issued five new executive orders aimed at providing fiscal incentives for investment in Nigeria’s oil and gas sector.
This came as the Federal Government announced the kick-off of the $550m Ubeta gas project that will deliver 350 million standard cubic feet of gas per day when operational.
The signing ceremony of the $550m Final Investment Decision between NNPC Ltd and TotalEnergies on the Ubeta Field Development Project took place in Abuja in June this year. The Ubeta field, which was discovered in 1964, is located northwest of Port Harcourt, Rivers State.
The five EOs issued by Tinubu are also expected to reduce the cost and time of finalising and implementing contracts to develop and expand gas infrastructure.
“The directives aim to immediately unlock up to $2.5bn in new oil and gas investments in the country,” the Special Adviser to the President on Energy, Olu Verheijen, declared in Washington DC, according to a statement issued on Tuesday by the Stakeholder Manager, Office of the Special Adviser to the President on Energy, Morenike Adewunmi.
According to a statement, Verheijen spoke at a luncheon organised as part of the inaugural US-Nigeria Strategic Energy Dialogue, hosted by the US State Department.
She said major energy reforms introduced in Nigeria since June 2023 have focused on improving energy security, attracting investment, and deepening collaboration with key partners like the United States Government.
The dialogue was established in June 2023 to create a platform for the US and Nigerian governments and private sector to deepen bilateral cooperation to advance the implementation of shared energy and climate action ambitions.
Nigeria seeks to create a robust regulatory framework and attract new investments in the production of gas for power, transportation, and clean cooking.
Verheijen said, “I cannot overstate the importance of our longstanding relationship with the US and this inaugural dialogue. The goal of this dialogue is for us to jointly proffer solutions that will close the energy access gap for close to 100 million Nigerians who still lack reliable power.
“We want existing and potential partners to better understand our areas of priority so that our collaboration can be better targeted, and with tangible outcomes.”
Verheijen highlighted key reforms that the government of Nigeria has launched to improve the viability of the gas-to-power value chain since Tinubu assumed office.
These include initiatives to improve cash flows in electricity distribution through smart metering and the payment of outstanding debts owed investors, and to reduce carbon emissions from gas production.
“To support the reform efforts, President Bola Tinubu has issued five new executive orders aimed at providing fiscal incentives for investment and reducing the cost and time of finalising and implementing contracts to develop and expand gas infrastructure,” she added.
The presidential aide added that the reforms have since started yielding results, with the recent announcement of a Final Investment Decision on a new $550m upstream gas project that will deliver 350 million standard cubic feet of gas per day when operational.
She acknowledged the support of financing and technical partners like the United States Government, the World Bank, and the African Development Bank towards Nigeria’s ambitious goals to expand electricity access and reliability through grid and off-grid solutions.
Verheijen affirmed her optimism about the bright prospects for Nigeria’s energy sector, especially with the renewed focus on gas as a transition fuel in the race to meet the country’s commitments to the Paris climate agreement.
She said, “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.”
The Assistant Secretary of the State Department’s Bureau of Energy Resources, Geoffrey Pyatt, said Nigeria and the United States will continue to drive their mutual energy security goals.
“The inaugural US-Nigeria Strategic Energy Dialogue [sets] the stage for strengthened energy collaboration between the United States and Nigeria. Together, we’re advancing shared energy security, decarbonization, and economic growth goals,” Pyatt said.
The Nigerian delegation to the US-Nigeria Strategic Energy Dialogue, which took place on September 11 – 12, 2024, was led by the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo.
It also included officials from the Ministry of Power, Nigerian Upstream Petroleum Regulatory Commission, Nigerian Midstream and Downstream Petroleum Regulatory Authority, Nigerian Content Development and Monitoring Board, NNPC Limited, and others.
The US delegation included representatives from the Bureau of African Affairs, USAID, the US Department of Energy, the US Trade and Development Agency, and the Export-Import Bank.
The dialogue saw the launch of a new Nigeria-focused initiative, the Clean Energy Alliance of Nigeria, by the US State Department, to mobilise stakeholders to support and promote investment in clean energy in Nigeria.
