Presidential adviser says recent reforms have improved investor confidence, but sustained capital spending remains essential to unlocking more than 200 trillion cubic feet of proven gas reserves
Nigeria’s average daily natural gas production has increased from approximately seven billion cubic feet to eight billion cubic feet, while four gas projects have reached final investment decision in less than two years, according to the Special Adviser to the President on Energy (Oil and Gas), Mrs Olu Arowolo Verheijen.
Verheijen disclosed this on Wednesday at the Africa Interviews Sustainability Forum 2026 in Lagos, where discussions focused on energy security, Africa’s energy transition and the role of natural gas in economic development.
She attributed the reported progress to reforms introduced by President Bola Tinubu’s administration to remove investment barriers and unlock the country’s gas resources for electricity generation, industrialisation and wider economic growth.
Nigeria holds more than 200 trillion cubic feet of proven natural gas reserves, giving it substantial potential to expand domestic energy supply, develop gas-based industries and increase export earnings.
However, the scale of the resource base has not automatically translated into sufficient infrastructure, reliable energy supply or broad-based industrial growth.
Verheijen said sustained investment would be required to convert the country’s natural wealth into stronger industrial output, employment opportunities and higher incomes.
“A country can sit on enormous natural wealth and fail to turn it into energy to power industry, industries that create jobs and jobs that help us grow incomes,” she said.
Investment decisions signal confidence
A final investment decision, or FID, generally represents a major commitment by project sponsors to proceed with a development after evaluating its commercial viability, financing and other requirements.
Reaching this stage can signal improved investor confidence, but it does not mean that a project is already producing gas or has completed construction.
The four reported investment decisions could therefore represent progress towards expanding future gas capacity, depending on the projects involved, their scale and implementation schedules.
Nigeria’s ability to increase production will depend on the availability of financing, effective regulation, security, infrastructure and commercially viable arrangements between producers and buyers.
Investment in gas processing facilities, pipelines and distribution networks is also essential to ensure that additional production can reach power plants, factories and other customers.
Gas remains central to industrial development
Natural gas can support electricity generation, fertiliser production, petrochemicals, manufacturing and other energy-intensive activities.
Reliable domestic supplies could help businesses reduce exposure to imported fuels and improve production planning, while expanded gas-based industries could create jobs and support value addition within Nigeria.
Gas also has a role in the government’s cleaner-cooking agenda, including efforts to encourage the adoption of LPG by households.
However, increased gas production must be matched by infrastructure and a clear strategy for balancing domestic consumption, exports, environmental considerations and long-term energy security.
Execution will determine economic impact
The reported rise in daily output and the four investment decisions provide indicators of progress, but the long-term success of the strategy will depend on sustained production, completed infrastructure and actual deliveries to customers.
For Nigeria, the objective is not simply to increase the volume of gas extracted but to convert that resource into dependable electricity, industrial capacity, employment and higher incomes.
The next phase will require consistent investment, efficient project execution and stronger links between producers, transporters, power generators and industrial consumers.
