⬆️Olu Verheijen.
The Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, has called for a strategic shift in Nigeria’s oil and gas industry from recovering investments and increasing production to leveraging the sector for broader economic growth, industrialisation and national development.
Verheijen said the country must ensure that increased oil and gas production translates into stronger domestic industries, reliable electricity supply, job creation and improved living standards for Nigerians.
She made the call 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).
According to her, Nigeria’s next phase of oil and gas development must go beyond production figures to building the country’s productive capacity and creating lasting economic opportunities.
She recalled that at the previous gathering, she had identified four indicators for measuring progress in the sector: reserves, revenues, reliability and responsibility, stressing that the same benchmarks remained relevant.
Using the IMA gas field as an example, Verheijen highlighted the impact of reforms in changing Nigeria’s investment climate, noting that the field, discovered in 1973, only reached a final investment decision (FID) in September 2026.
She observed that more than five decades elapsed between the discovery and the decision to develop the field, arguing that the delay was not due to the absence of gas resources but weaknesses in the investment environment.
“The gas did not suddenly appear in 2026. The conditions for investing in it changed,” she said.
She attributed the improved investment climate to reforms introduced under President Tinubu, explaining that the administration had worked to address longstanding challenges, including unclear responsibilities, delays in contracting, uncompetitive fiscal terms and unreliable access to markets.
Verheijen said the President provided the political backing and mandate for the reforms, while her team worked with relevant ministries, regulators, the Nigerian National Petroleum Company Limited (NNPC), operators and investors to develop and implement measures capable of attracting investment.
She explained that the fiscal reforms were designed to reward production, protect existing government revenues, provide workable regulations and tailor incentives to different categories of resources.
In the gas sector, she said, fiscal incentives were complemented by commercial negotiations to ensure that investors had access to customers and prices capable of making projects financially viable.
She particularly highlighted the importance of opening opportunities for third-party gas supply to Nigeria LNG Limited (NLNG), describing the initiative as part of efforts to improve the bankability of gas developments.
The presidential adviser disclosed that the Ubeta and Bonga North projects reached final investment decisions in 2024, while the IMA gas field had joined the list since the last NAPE gathering.
She said the investment decisions represented significant progress because they committed capital, moved projects into execution and laid the foundation for future production.
However, she stressed that the government and industry must now focus on translating investment recovery into increased production and wider economic benefits.
Outlining the priorities for the next phase of the industry, Verheijen identified exploration, local capability development and the adoption of adaptive technology as three critical areas requiring sustained attention.
On exploration, she said Nigeria must replenish its reserves through reliable geological data, credible exploration programmes and development plans that take infrastructure and market opportunities into consideration from the outset.
She noted that improved reservoir understanding, infill drilling and enhanced recovery techniques could deliver immediate production gains, but cautioned that such interventions must complement rather than replace investments in new discoveries and developments.
She challenged oil and gas operators to bring forward programmes capable of replenishing their portfolios and identify the government decisions required to unlock them, while demonstrating the capital, technical expertise and execution capacity behind their proposals.
On local capability, Verheijen said the growing presence of Nigerian independent oil companies presented an opportunity to accelerate production from onshore and shallow-water assets, while international oil companies concentrated more on deepwater and integrated gas developments.
She, however, warned that Nigerian ownership must be accompanied by sound corporate governance, strong financial capacity, technical competence and responsible engagement with workers, host communities and the environment.
According to her, local content development should go beyond meeting regulatory requirements to building enduring technical and industrial capabilities that would enable Nigerian companies and professionals to compete internationally.
She said the industry should produce engineers capable of leading major developments and fabrication companies able to secure contracts beyond Nigeria.
“We should be proud of Nigerian ownership. We should be ambitious enough to demand Nigerian excellence,” she declared.
On technology, the presidential adviser identified improved seismic interpretation, reservoir modelling, digital monitoring and methane measurement as important tools for improving operational efficiency, reducing costs, minimising downtime and enhancing safety.
She also highlighted the growing relevance of artificial intelligence in the industry, noting that while the technology could expand the capabilities of professionals, it could not replace reliable data and sound professional judgement.
Verheijen urged NAPE to leverage its professional network to deepen technical knowledge and develop the skills required to sustain the next phase of growth in the industry.
She further warned that Nigeria must strengthen its competitiveness as international investors increasingly consider emerging oil and gas opportunities in countries such as Guyana and other African destinations.
She said Nigeria could not build its investment strategy around disruptions in other producing countries or temporary increases in demand, insisting that its projects must remain commercially viable even when oil prices decline or new supplies enter the market.
Beyond the upstream sector, Verheijen emphasised the need to integrate oil, gas and electricity into a coherent national economic strategy.
She argued that energy poverty was also an industrialisation challenge, explaining that manufacturing industries could not compete without dependable electricity, while farmers would struggle to maximise the value of their produce without adequate processing, storage and transportation facilities.
She said oil production could strengthen export earnings and public finances, while gas development could support manufacturing, electricity generation and export markets.
However, she stressed that the commercial viability of gas projects depended largely on the ability of customers to pay for supplies.
Consequently, she identified the resolution of legacy debts in the power sector, improved electricity metering and targeted support for vulnerable consumers as essential components of the broader energy reform agenda.
According to her, gas suppliers need assurances of payment, while electricity consumers deserve accurate billing and reliable services.
She maintained that these measures, alongside investments in renewable energy, stronger electricity networks and improved energy efficiency, would help build an energy system capable of supporting Nigeria’s industrial and economic ambitions.
Verheijen also called for increased domestic manufacturing, processing of locally produced resources and expansion of supplies to neighbouring African countries.
She said Nigerians must be able to see tangible benefits from oil and gas investments, including businesses created, skills developed, employment opportunities generated and public infrastructure funded through government revenues.
Acknowledging the economic difficulties facing citizens, she said government must provide honest answers and sustained delivery rather than relying on policy announcements and economic projections.
“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 reforms initiated under President Tinubu outlast individual political tenures and investment cycles.
Reiterating the four benchmarks of reserves, revenues, reliability and responsibility, Verheijen said the industry must demonstrate progress through projects successfully executed and the quality of services delivered to the wider economy.
She expressed optimism that Nigeria could build a more productive economy from its oil and gas resources, urging young professionals in the industry to work towards a future in which the country’s natural resource potential would be matched by strong institutions, technical competence and sustainable economic opportunities.
She said the younger generation should not have to wait another working lifetime to see Nigeria’s resource potential translated into national prosperity.