Nigeria has announced a comprehensive energy reform plan aimed at enhancing energy security, attracting investment, and closing the energy access gap for 100 million citizens. Olu Verheijen, Special Adviser to the Nigerian President on Energy, unveiled the plan at the inaugural US-Nigeria Strategic Energy Dialogue in Washington.
The reforms, introduced since President Bola Tinubu took office in June 2023, include five new presidential directives aimed at cutting costs and reducing delays in contracting for gas projects. These directives are projected to unlock up to $2.5 billion in new oil and gas investments.
Key Reforms:
– _Final Investment Decision (FID) on a $550 million upstream gas project_: Set to produce 350 million cubic feet of gas per day, solidifying Nigeria’s commitment to utilizing gas as a key component of its energy transition strategy.
– _Smart metering and debt payments_: To improve cash flow in Nigeria’s electricity distribution network.
– _Initiatives to reduce carbon emissions in gas production_: Aligning with the administration’s commitments under the Paris climate agreement.
“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,” Verheijen noted.
The US delegation, led by Assistant Secretary of State Geoffrey R. Pyatt, praised the dialogue as a new chapter in US-Nigeria cooperation, focusing on energy security, decarbonization, and economic growth. Pyatt also announced the launch of the Clean Energy Alliance of Nigeria (CLEAN), a US initiative designed to mobilize investment in Nigeria’s clean energy sector.
The two-day dialogue underscores the deepening partnership between the US and Nigeria as they work together to tackle shared energy and climate challenges.
