The Federal Government has announced plans to deliver a minimum of 20 hours of electricity daily to Nigerians by 2027, a goal that hinges on significant investments in the country’s oil and gas industry. Currently, the sector faces chronic underinvestment, which officials say hinders energy progress.
At the African Energy Week in Cape Town, South Africa, President Bola Tinubu’s Special Adviser on Energy, Olu Verheijen, addressed global energy players, encouraging investment in Nigeria’s energy landscape. “By 2027, Nigeria aims to ensure 20 hours of electricity daily for consumers in urban centers and industrial hubs,” Verheijen stated in a press release from the State House.
The statement comes as Nigeria continues to grapple with national grid instability, with frequent blackouts linked to aging infrastructure and inadequate maintenance. The most recent grid collapse on Tuesday marks the 10th instance this year, underscoring the urgent need for sustainable solutions.
Despite an installed capacity of about 12,500 megawatts, Nigeria often produces only a fraction of this, leaving millions without reliable power. Verheijen emphasized the Tinubu administration’s commitment to revitalizing the power sector, aiming to improve access for the 86 million Nigerians currently underserved.
Among the proposed solutions are plans to deploy seven million smart meters to improve revenue collection, resolve legacy debts, and expand off-grid solutions to rural areas. Verheijen also highlighted Nigeria’s recent economic reforms, including the removal of the fuel subsidy and liberalization of foreign exchange, as factors that have strengthened the country’s investment appeal.
President Tinubu’s administration is also working to address long-standing challenges in Nigeria’s oil and gas sector, where underperformance has become a concern despite the nation’s vast reserves. Verheijen noted that Nigeria has attracted only 4% of Africa’s oil and gas investments since 2016, with capital often diverted to other countries perceived as more stable. She pointed to Brazil, which, with only 30% of Nigeria’s oil reserves, has managed to produce 131% more oil, largely due to robust investment.
To improve competitiveness, the administration has introduced new fiscal incentives for deep offshore and non-associated gas projects, marking a historic first for Nigeria’s energy policy. Verheijen highlighted efforts to cut down on lengthy contracting timelines from 38 months to 135 days and reduce the 40% cost premium often associated with operating in Nigeria’s petroleum industry.
Additional initiatives focus on expanding Nigeria’s midstream and downstream sectors, including investments in compressed natural gas, liquefied petroleum gas, and electric vehicle infrastructure as part of the Presidential Gas for Growth Initiative. According to Verheijen, these reforms are set to stimulate demand in sectors like heavy transport, decentralized power, and cooking, while supporting Nigeria’s shift away from PMS and diesel.
The government has unlocked over $1 billion across the energy value chain, with further investments anticipated, including a major deepwater exploration project expected by mid-2025, marking Nigeria’s first in over a decade. Verheijen’s remarks underscored Nigeria’s commitment to reshaping its energy sector to foster growth, attract investment, and provide more stable power access across the nation.
