The Federal Government has raised concerns over the prolonged delays in developing Nigeria’s hydrocarbon resources, revealing that the IMA gas field, discovered in 1973, only reached a Final Investment Decision (FID) in September 2026.
The development, which came more than five decades after the discovery, has renewed attention on the structural and investment challenges that have historically prevented Nigeria from translating its substantial oil and gas resources into commercial production.
The Special Adviser to the President on Oil and Gas, Olu Arowolo Verheijen, disclosed this on Monday at the 44th Annual International Conference and Exhibition of the Nigerian Association of Petroleum Explorationists (NAPE) in Lagos.
Verheijen said the prolonged delay demonstrated that Nigeria’s challenges in developing its petroleum resources were not necessarily caused by a shortage of hydrocarbon deposits but by an investment environment that made projects difficult to finance and execute.
She identified policy uncertainty, lengthy contracting processes, uncompetitive fiscal terms and unreliable access to paying customers as some of the factors that had undermined investment in the country’s petroleum industry.
According to her, the experience of the IMA gas field illustrates how discoveries can remain commercially dormant for decades when investors lack the confidence and economic incentives required to commit capital.
She stressed that the country’s favourable geology had historically been treated as sufficient attraction for investors, despite weaknesses in the regulatory and commercial environment.
Verheijen argued that Nigeria must address these structural problems to ensure that discoveries are translated into actual production, revenue generation and broader economic benefits.
She explained that the conditions necessary to make the IMA gas project commercially viable had changed over time, allowing the development to reach the investment decision stage in September 2026.
The presidential adviser maintained that improving the investment climate would require greater policy consistency, faster project approvals, competitive commercial arrangements and reliable markets for gas production.
The development of stranded and undeveloped gas resources remains important to Nigeria’s ambition to strengthen domestic energy supply, expand industrialisation, increase export earnings and position natural gas as a major contributor to economic growth.
The Federal Government’s position underscores the importance of ensuring that future discoveries are supported by investment-friendly policies and efficient project development processes to prevent a repeat of decades-long delays.
