By Dennis Okechukwu
Nigeria must move beyond increasing crude oil and gas production figures and ensure that rising investments in the petroleum sector translate into industrialisation, job creation and improved living standards, Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, has said.
Verheijen said the country’s next phase of oil and gas development must focus on converting investment recovery into national productive strength, stressing that increased production should contribute directly to economic growth and national renewal.
She made the remarks while delivering an address titled “Unlocking More Barrels: From Recovery to National Renewal” at the 44th annual international conference and exhibition of the Nigerian Association of Petroleum Explorationists (NAPE).
Using the IMA gas field as an example, Verheijen highlighted the lengthy delays that have historically characterised oil and gas investments in Nigeria.
She recalled that the field was discovered in 1973 but did not reach a final investment decision until September 2026, more than five decades after its discovery.
According to her, the delay demonstrated that Nigeria’s challenge was not necessarily a lack of natural resources but the unfavourable conditions that previously discouraged investors from committing capital to their development.
“The gas did not suddenly appear in 2026. The conditions for investing in it changed,” she said.
She identified uncertain responsibilities, slow contracting processes, uncompetitive economic conditions and unreliable access to markets as some of the factors that had undermined investment decisions in the sector.
Verheijen credited the administration of President Bola Tinubu with providing the political backing and policy direction for reforms aimed at improving Nigeria’s investment environment.
She explained that the government had reviewed actual projects, benchmarked Nigeria against competing investment destinations and worked with ministries, regulators, the Nigerian National Petroleum Company Limited (NNPC), operators and investors to remove obstacles to investment.
She said the fiscal reforms were designed to reward production, protect existing revenues, maintain workable regulations and provide incentives tailored to different resources.
In the gas sector, she noted that fiscal incentives had to be accompanied by commercial arrangements capable of making projects financially viable.
She specifically highlighted opportunities for third-party gas supply to Nigeria LNG Limited (NLNG) as an important development in improving the commercial prospects of gas investments.
Verheijen disclosed that Ubeta and Bonga North reached final investment decisions in 2024, while the IMA gas field joined the list in September 2026.
She said the decisions represented significant progress because they moved projects into execution, committed investment capital and laid the foundation for future production.
However, she stressed that securing investment decisions was only part of the task, adding that the country must now focus on translating the commitments into increased production and broader economic benefits.
The presidential aide identified exploration, local capacity development and the adoption of modern technology as three critical priorities for sustaining growth in the petroleum industry.
On exploration, she said Nigeria must replenish its resource base through reliable geological data, credible exploration programmes and development plans that consider infrastructure and market access from the outset.
She also called for improved reservoir understanding, infill drilling and enhanced recovery techniques to increase output from existing fields.
Verheijen challenged oil and gas operators to present concrete programmes for expanding their reserves and identify government decisions required to accelerate investment.
On local capacity, she said the growing involvement of Nigerian independent oil companies offered opportunities to expand production, particularly in onshore and shallow-water operations, while international companies could concentrate on deepwater and integrated gas projects.
She, however, emphasised that Nigerian ownership must be accompanied by strong corporate governance, sound financial capacity, technical competence and environmental responsibility.
According to her, local content development should go beyond participation in projects to building indigenous expertise and industrial capacity.
“Local content should leave Nigeria more capable after a project than before it began. It should mean engineers who can lead the next development and fabrication companies that can win work beyond our borders,” she said.
She added that young Nigerians should have opportunities to acquire specialised technical skills and take leadership roles in complex oil and gas operations.
On technology, Verheijen advocated greater deployment of advanced seismic interpretation, reservoir modelling, digital monitoring and methane measurement to improve operational efficiency, reduce production losses and enhance safety.
She said artificial intelligence could expand the capabilities of industry professionals but emphasised that its effectiveness would depend on reliable data and sound professional judgement.
The presidential aide also warned that Nigeria must remain competitive in attracting investments, particularly as emerging petroleum destinations such as Guyana and other African countries provide investors with alternative opportunities.
She said disruptions in other producing countries should not constitute Nigeria’s investment strategy, insisting that the country’s projects must remain competitive even when oil prices decline or new supplies enter the market.
Beyond petroleum production, Verheijen argued that oil, gas and electricity must be integrated into a broader national economic strategy capable of addressing Nigeria’s industrialisation challenges.
She explained that unreliable energy supply continued to constrain manufacturing, agricultural processing, storage, transportation and employment opportunities for young Nigerians.
According to her, while oil production could strengthen export earnings and public finances, gas development should support electricity generation, industrial activities and export markets.
She also identified the resolution of outstanding electricity-sector debts, improved metering and targeted support for vulnerable consumers as necessary measures for strengthening the energy value chain.
She maintained that gas investments would only become commercially sustainable when suppliers had confidence that customers would pay for the products delivered.
Verheijen called for greater domestic manufacturing, improved processing of locally produced resources and increased energy supply to neighbouring African countries.
She said the ultimate measure of success should be the ability to connect petroleum investments to businesses, jobs, technical skills and improved public services.
Acknowledging the economic difficulties confronting Nigerians, she said citizens were entitled to demand tangible improvements in their living conditions rather than rely on government projections and policy announcements.
“A family struggling with the cost of living cannot spend a forecast. A business cannot run on a policy announcement. Nigerians are entitled to ask when reform will make their lives better. We owe them honest answers and sustained delivery,” she said.
She urged government and industry stakeholders to ensure that the ongoing reforms outlive the current administration and individual investment cycles.
Reaffirming the four benchmarks she had previously identified for measuring progress in the sector, Verheijen said Nigeria must continue to focus on reserves, revenues, reliability and responsibility.
She challenged industry professionals, particularly young Nigerians, to build an oil and gas sector capable of translating the country’s natural resource wealth into lasting economic opportunities.
She said the objective of unlocking more barrels should ultimately be to create a more productive Nigeria and a more industrialised Africa.