Lawrence Olaoye 
…calls for investments by global players
…says country aims to provide 20hrs electricity daily in urban, industrial areas by 2027
The Presidency has lamented that the country has historically underperformed in oil and gas production despite her wealth in the oil and gas industry.
The Special Adviser to the President on Energy, Olu Verheijen, who urged investors to seize new opportunities in Nigeria’s energy sector, while highlighting untapped potential and recent reforms to attract capital, said this at the ongoing African Energy Week in Cape Town, South Africa.
According to a release by the Director of Information at the State House, Abiodun Oladunjoye, she underscored the untapped potential within the industry and discussed the recent reforms implemented by President Bola Tinubu’s administration to attract investment.
Verheijen referenced how countries like Brazil that have only 30% of Nigeria’s oil reserves have outperformed by producing 131% more than the current production of Nigeria.
“Despite our abundant endowments, we have underperformed against our potential. For example, Brazil holds only 30% of Nigeria’s oil reserves but produces 131% more. This is largely due to under-investment,” she said.
Verheijen said that since 2016, Nigeria has attracted only 4% of African oil and gas investments, while investment has surged in other less resource-rich nations.
“Since 2016, Nigeria has managed to attract only 4 per cent of total investments in oil and gas, while less-resourced countries in Africa have enjoyed a bigger share. When we analyzed investment data, we also found that, between 2013, when Nigeria’s last deepwater project reached FID, and now, IOCs operating in Nigeria have committed more than $82 billion in deepwater investments in other countries that they have deemed to be more attractive destinations for their capital.”
Recognizing this trend, the presidential aide highlighted many efforts by the Tinubu administration to enact reforms aimed at reshaping Nigeria’s investment landscape.
Among these initiatives, she said the government has introduced fiscal incentives targeting deep offshore and non-associated gas projects, marking the first time Nigeria has outlined a fiscal framework specifically for deepwater gas.
In efforts to enhance the upstream Oil and Gas sector, she said her office has collaborated closely with the office of the National Security Adviser to create and distribute focused security directives, leveraging insights garnered from on-ground operators.
Additionally, Verheijen revealed steps to streamline approval processes by clearly defining the regulatory scopes involved.
This initiative, she said, aimed to significantly reduce the extended project timelines that have historically plagued the industry, as well as the high-cost premiums associated with operating in Nigeria.
She added, “Our target is to shorten the contracting timelines from an extensive 38 months to just 135 days, while also working to eliminate the 40% cost premium that currently exists within the Nigerian petroleum industry.”
The presidential aide also revealed efforts by the current Tinubu administration to further open up the oil and gas sector for bigger investments with a set of clear fiscal incentives for Non-Associated Gas and Deep offshore Oil & Gas exploration and production.
“This is the first time that Nigeria is outlining a fiscal framework for Deepwater gas since exploration in the basin commenced in 1991,” She said.
According to her, amongst other initiatives, there has been a focus on midstream and downstream investments in Compressed Natural Gas, (CNG), liquefied petroleum gas, and electric vehicles as part of the Presidential Gas for Growth Initiative.
She added that the administration has also worked to streamline regulatory processes, shorten project timelines, and reduce the high-cost premium of operating in Nigeria.
