The Federal Government has promised at least to provide Nigerians 20 hours of daily electricity by 2027.
It has however said to realise this target, there must be sufficient investment in Nigeria’s oil and gas sector, which it said is currently far below expectations.
The Special Adviser to the President on Energy, Olu Verheijen, made this statement at the Energy Week in Cape Town, South Africa, in a release by the State House Director of Information and Publicity, Abiodun Oladunjoye, on Thursday.
Verheijen said, “By 2027, Nigeria aims to ensure 20 hours of electricity daily for consumers in urban areas and industrial hubs.”
The statement titled, ‘At African Energy Week in Cape Town, Olu Verheijen Invites Global Players to Invest in Nigeria’s Energy Sector,’ said despite inherent challenges, President Bola Tinubu is championing new initiative to guarantee electricity in the country.
Verheijen’s comments come amid the frequent collapse of Nigeria’s national power grid, which has led to widespread blackouts across the country.
The grid collapsed on Tuesday, marking the 10th such incident since January 2024. The Federal Government has attributed these recurring collapses to ageing infrastructure, inadequate maintenance, and insufficient investment in the power sector.
Despite having an installed capacity of approximately 12,500 megawatts, Nigeria often generates only a fraction of this, leaving many areas without reliable electricity.
At the Energy Week, Verheijen told participants about efforts by the Tinubu administration to revitalise the nation’s power sector, with plans to provide more reliable electricity access for the 86 million Nigerians currently underserved.
She said the scheme aims to improve revenue assurance and collection.
Other key measures include tackling legacy debt, deploying seven million smart metres to reduce losses, and expanding off-grid solutions for remote communities.
Highlighting recent macroeconomic reforms, such as the removal of the petrol subsidy and foreign exchange liberalisation, she expressed confidence that Nigeria is poised for unprecedented growth.
“Under President Tinubu’s leadership, Nigeria is championing reforms to unlock its vast economic potential and create jobs,” she said, inviting foreign partners to participate in Nigeria’s next chapter of growth.
While discussing the recent reforms implemented by President Bola
Tinubu’s administration to attract investment, Verheijen noted that the country has historically underperformed in oil and gas production despite its wealth in the sector.
She referenced how countries like Brazil, which have only 30 per cent of Nigeria’s oil reserves, have outperformed Nigeria by producing 131 per cent more than the country’s current output.
“Despite our abundant resources, we have underperformed against our potential. For example, Brazil holds only 30 per cent of Nigeria’s oil reserves but produces 131 per cent more. This is largely due to under-investment,” she said.
She lamented that since 2016, Nigeria has attracted only 4 per cent 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 larger share.
“When we analysed investment data, we also found that, between 2013, when Nigeria’s last deepwater project reached FID, and now, International Oil Companies (IOCs) operating in Nigeria have committed more than $82bn in deepwater investments in other countries they deemed to be more attractive destinations for their capital,” she told the audience.
Recognising this trend, the presidential aide highlighted efforts by President Tinubu’s administration to enact reforms aimed at reshaping Nigeria’s investment landscape.
She cited the government’s introduction of 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 gathered from on-the-ground operators.
Furthermore, Verheijen revealed steps to streamline approval processes by clearly defining the regulatory scopes involved.
This initiative, she said, aims 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.
“Our target is to shorten the contracting timelines from an extensive 38 months to just 135 days, while also working to eliminate the 40 per cent cost premium that currently exists within the Nigerian petroleum industry,” she added.
The presidential aide also revealed efforts by the current President Tinubu administration to further open up the oil and gas sector for larger investments with a set of clear fiscal incentives for non-associated gas and deep offshore oil and 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, 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.
“We have also introduced fiscal incentives to catalyse investments in the midstream and downstream sectors, including compressed natural gas, liquefied petroleum gas, and mini-liquefied natural gas.
“These align with the broader Presidential Gas for Growth Initiative, which seeks to enable the displacement of PMS and diesel in three key sectors: heavy transport, decentralised power generation, and cooking. These incentives are also stimulating demand for electric vehicles.
“Our goal is to eliminate the 40 per cent cost premium within the Nigerian petroleum industry and cut down contracting timelines from 38 months to 135 days,” Verheijen stated.
She said the government has unlocked over $1bn across the energy value chain, with two more major investment projects expected by mid-2025.
“We are also facilitating the transfer of onshore and shallow water assets to local companies with the capacity to grow production while supporting the transition of International Oil Companies with resilient capital into deep offshore and integrated gas.
“We have unlocked over $1 billion in investments across the value chain and by the middle of 2025, we expect to see FID on two more projects, including a multibillion-dollar deepwater exploration project, which will be the first of its kind in Nigeria in over a decade – one of many to come,” Verheijen explained.