4 hours ago
24
President Bola Ahmed Tinubu has said the various reforms initiated by his administration in the energy sector are bringing investors back to the country.
The president said this Tuesday at the opening ceremony of the 2025 edition of the Nigerian International Energy Summit (NIES 2025) in Abuja.
He noted that with the reforms, a conducive environment had been created for investors in the sector to return.
For more than a decade, there were no major investments as investors shied away from Nigeria’s oil and gas sector due to policy and regulatory issues.
Represented by Minister of State for Finance Dr. Doris Uzoka-Anite, the president stressed that the enabling environment created will support investments, adding that there were more incentives for potential investors in the sector.
He said the reforms were designed to create a more business- friendly environment and attract both local and international investments by simplifying Nigeria’s tax regulations, offer incentives and ensure a more transparent and predictable fiscal framework.
“We aim to remove barriers to entry and support the growth of businesses in Nigeria. These measures will not only make it easier for companies to invest and operate in our country, but also stimulate economic development, create jobs and enhance overall prosperity for our nation,” he said.
The president insisted that as the country strives to meet growing global energy demands, it must also ensure that its policies, infrastructure and investment align with sustainable and equitable growth.
Tinubu further said: “For close to two years, our administration has remained resolute in reforms and milestones in Nigeria’s energy sector and the economy at large. These reforms have liberalized our economy, making it an investment destination of choice. The removal of the PMS subsidy and FX revitalization are two of the main reforms of this administration in his first year, and as the President always says, bring your investments and do not be afraid to repatriate your investment.
“To ensure that our local refineries are very competitive, thereby lowering the cost of the retail price among petroleum products for our populace, we introduced the sale of crude oil in naira. This strategic move not only enhances the operational efficiency of local refineries by reducing foreign exchange risk and transaction costs, but also fosters a stronger and more stable domestic market by denominating crude sales in Naira. We are supporting the local currency and creating a more resilient economy.
“This initiative is expected to result in more affordable petroleum products for our citizens, ultimately improving their standard of living and stimulating economic growth. This is also going to elevate the effects of the PMS subsidy removal.
“The enactment and implementation of the petroleum Industry Act the PIA has also strengthened the regulatory framework of our energy sector. We have successfully repositioned the Nigerian National Petroleum Company (NNPC Ltd) as a fully commercial entity, enhancing efficiency, transparency and competitiveness.
“We have also issued far reaching executive orders that have seen the return of investment into our oil and gas sector, in the upstream sector. We have witnessed increased crude oil production owing to strategic interventions in security, infrastructure, development and investment incentives. Our production has steadily recovered, ensuring that Nigeria remains a key player in the global oil market. The launch of the Presidential Executive Order on oil and gas sector reforms has streamlined processes, fast tracked licensing rounds and encouraged indigenous participation, thereby fostering local content development.
“Our resolute determination towards the completion and operationalisation of key gas infrastructure, including the AKK pipeline, will strengthen our capacity to supply clean energy to industries and households, while boosting regional energy security, in addition to creating jobs for our teaming youth.
“The implementation of the Presidential Compressed Natural Gas initiative is transforming the transportation sector, reducing dependence on one single source of fuel, which used to be PMS. And of course, with this initiative, we’re seeing more or encouraging more investment in the gas sector. We recognize that sustainable energy development requires significant investment.
“Nigeria continues to champion regional energy cooperation through the West African gas pipeline and other continental initiatives, ensuring that Africa harnesses its collective energy potential. As we look to the future, we remain committed to fostering an energy ecosystem that is resilient, diversified and inclusive. We will continue to implement policies that ensure energy security, drive industrialization and support the aspirations of the Nigerian people,” the president added.
He further said the administration’s effort to improve the country’s power generation had seen an increase in investments in renewable energy.
“Our effort to expand power generation and improve transmission infrastructure offers investment opportunities in both conventional and renewable energy sources. Our government’s focus on increasing the share of renewable energy in the energy mix aligns with global trends and presents a sustainable investment opportunity.
“…We are actively developing a hydrogen policy to attract investors and integrate hydrogen in our energy mix. We have unveiled a hydrogen development agenda committed to creating a unified national hydrogen policy. This policy aims to harness the potential of blue and green hydrogen, leveraging our abundant natural resources and strategic geographic position,” he added.
…Minister assures investors of safety
In his remarks, Minister of State for Petroleum (Oil) Senator Heineken Lokpobiri assured investors of the safety of their investment.
Citing the case of Oando, Renaissance, Seplat, and Chevron, the minister said the rate of divestment by the International Oil Companies (IOCs) and their acquisition by local investors was a testimony to the fact that Nigeria is an attractive investment destination.
“It underscores the fact that Nigeria is a very, very attractive investment destination. Bring your capital to invest, you can diversify well. It also shows that we have developed or grown enormous local capacity.
“That those who are buying over these assets are those who have worked in Shell and the IOCs alike. And they have the capacity to be able to run these companies in a manner that will be profitable. Nigeria has nothing to lose.
“We get our taxes, and we get our benefits, nothing to worry about. And I have no hesitation making this case at a global stage, saying that Nigeria has nothing to lose.
“It’s only important for us to say that because of the strategic policies of this government, out of the four final investment decisions made in Africa, three are in Nigeria,” Lokpobiri stressed.
He also clarified that contrary to impression being created in some quarters, no international oil company left Nigeria, saying, rather, they only diversified onshore to go into deep-water operations.
“It’s only important for me to state here that no IOC is leaving Nigeria. Contrary to the impression, you know, some people created that, you know, IOCs are leaving Nigeria. They are leaving for deep offshore.
“All the IOCs cannot find a better location than Nigeria for business. And a consultation with OPTS, comprising the IOCs, and they told me that Nigeria is still the best destination for business. And they are firm in their commitment to say they are not leaving Nigeria,” the minister said.
The minister noted that despite the substantial investments in Africa, the continent still needed more investments, which he said can only come through partnerships and collaboration.
“We want to expand the investments so that we can, first of all, address the issue of energy poverty. And then we will transition. We’ve also done much more than most countries in the global market.
“We have a robust regulatory framework on exploration in a cleaner, greener and more sustainable way. We have adopted gas as a transition fuel. We have a law of climate change.
“We have penalties for gas flooding. These things may not exist in most other countries in the West. But in addition to this, the priorities should be energy security for industriasation and growth,” he further said.
…NNPCL on infrastructure
On his part, Group Chief Executive Officer Nigeria National Petroleum Company Limited (NNPCL) Mele Kyari said the country was building its gas infrastructure and delivering gas to the domestic market.
There have been calls for the world to transit to cleaner energy as the proponents claim fossil fuel is responsible for a high percentage of global emission.
While sparing participants at the summit the details, Kyari disclosed that many domestic gas-based industries or power plants in the country were getting the gas supply they needed.
Presently, Nigeria is not only the largest producer of oil in Africa; it has the largest reserves of gas.
“And as we are doing this, let’s not forget that the transition conversation has brought something else on the table, that gas is a transition fuel. For us, it’s not just transition fuel; it’s the alternative that we have. It’s a better alternative, not just a transition fuel.
“We know today in our country, over 70 per cent of our country may not have access to clean cooking fuel. This is true. And of course, access to electricity is about 50 per cent of our population, so there is so much space there that gas can fill, and that’s why this country has taken the next step, which is to build the necessary infrastructure, create the necessary framework, and create the necessary fiscal incentives that are required,” he said.
English (US) ·