LONDON/ABUJA — Nigeria is witnessing a major shift in its energy sector as the administration of President Bola Ahmed Tinubu intensifies reforms aimed at converting the country’s vast oil and gas resources into measurable economic gains.
This was the central message delivered by Olu Verheijen, Special Adviser to the President on Oil and Gas, during the Nigerian–British Chamber of Commerce Energy Day 2026 in London.
Speaking at the event themed “Energy in Nigeria: From Potential to Reality,” Verheijen said Nigeria has long possessed immense energy resources but is now focusing on “discipline in conversion — from reserves to revenue and from gas to productivity.”
“Energy is not simply a sector. It is the foundation of national competitiveness,” she said, adding that energy reform is now being treated as core economic reform under President Tinubu’s agenda.
Revenue, Production and Reform Gains
According to her presentation, Nigeria’s fiscal and energy landscape has recorded notable changes since the reforms began:
Federation revenue rose to about ₦21 trillion in 2024, up from ₦12 trillion in 2023
Local petrol production increased to about 48 million litres per day, significantly reducing import dependence
Petrol imports dropped from about ₦2.3 trillion in Q1 2025 to under ₦90 billion a year later
Crude oil output averaged 1.64 million barrels per day in 2025, the highest onshore level in two decades.
She noted that reduced fuel imports have also eased pressure on Nigeria’s foreign exchange market, linking energy reform directly to naira stability and economic resilience.
Investment Confidence Returns
Verheijen also highlighted renewed investor confidence, driven by regulatory reforms and faster approvals in the oil and gas sector.
She said Nigeria now accounts for about 40% of Africa’s upstream Final Investment Decisions (2024–2025), with roughly $10 billion already committed and a pipeline of future investments estimated at $50 billion.
Contracting timelines have reportedly fallen from 36 months to about 14 months, with a target of six months under ongoing reforms.
Gas as Nigeria’s Industrial Engine
The presidency also reaffirmed gas as a central pillar of Nigeria’s industrialisation drive.
With reserves now exceeding 215 trillion cubic feet, gas production has increased from 6.83 to 7.63 billion standard cubic feet per day since 2023.
“A nation does not grow wealthy by owning resources alone. It grows wealthy by converting them into value,” Verheijen stated.
Gas is expected to power electricity generation, manufacturing, fertiliser production, transport, and export expansion.
Power Sector Reset Underway
The speech also highlighted reforms in the electricity sector, including the Presidential Power Sector Debt Reduction Programme, designed to settle up to ₦4 trillion in verified arrears.
So far:
₦2.28 trillion in settlement agreements signed
₦501 billion bond issued and oversubscribed
A second tranche of ₦729 billion is planned
Metering coverage has also risen to about 57% nationwide, while tariff restructuring is being implemented to improve efficiency and reduce subsidy pressure.
UK–Nigeria Energy Partnership
Verheijen stressed that Nigeria’s partnership with the United Kingdom remains central to unlocking financing and technical capacity.
She said the UK provides finance, legal structuring, insurance, and engineering expertise, while Nigeria offers resources, demand, and reform momentum.
From Potential to Reality
She concluded that Nigeria has moved beyond policy promises to execution:
“We have done the foundational work. The task now is delivery — from resources to revenue, from gas to power, and from potential to reality.”
