By Helen Okechukwu, JKNewsMedia Reporter
MORE THAN five decades after the discovery of the IMA Gas Field, its eventual approval for development has become a striking illustration of the investment barriers Nigeria is seeking to dismantle in its petroleum industry, the Federal Government (FG) has revealed.
JKNewsMedia.com reports that the project, which reached Final Investment Decision (FID) in September 2026, featured prominently in the policy address delivered by Olu Arowolo Verheijen, Special Adviser to President Bola Ahmed Tinubu on Oil and Gas, at the 44th Annual International Conference and Exhibition of the Nigerian Association of Petroleum Explorationists (NAPE 2026) in Lagos.
Speaking at Eko Hotels and Suites on November 9, Verheijen used the 53-year gap between discovery and investment approval to demonstrate why Nigeria must stop measuring its petroleum potential by the resources it discovers and start measuring it by the projects it successfully develops.
Her keynote address, titled “From Energy Recovery to National Renewal”, outlined an upstream strategy that places commercial viability, production growth and economic returns ahead of resource discovery announcements.
The argument was particularly significant for an industry where geological potential has not always translated into timely investment decisions, she stressed.
Verheijen identified prolonged contracting procedures, uncertain institutional responsibilities, uncompetitive project economics and unreliable access to paying customers as longstanding obstacles to development.
She said the Tinubu administration was addressing these constraints through coordinated fiscal, regulatory and commercial reforms involving government ministries, industry regulators, the Nigerian National Petroleum Company Limited (NNPC), operators and other stakeholders.
The objective, she explained, is to create an investment environment where fiscal incentives encourage actual production, protect existing government revenues and reflect the commercial characteristics of individual resources.
Gas development requires particular attention because attractive fiscal terms cannot independently guarantee investment. Developers also need sustainable pricing, access to markets and customers capable of meeting their payment obligations.
The administration’s decision to open opportunities for third party gas supply to Nigeria LNG (NLNG) reflects this broader effort to improve the commercial conditions for developing and supplying gas.
The IMA milestone has joined two other significant investment decisions in the upstream sector. Ubeta and Bonga North secured their FIDs in 2024, followed by IMA in September 2026.
For Verheijen, these developments demonstrate the importance of moving beyond policy announcements to decisions that commit capital and take projects into execution.
But securing investment approvals is only part of the challenge. Nigeria must now ensure that projects progress on schedule, existing assets deliver better output and exploration produces sufficient new reserves to sustain future production.
Addressing the conference theme, “Unlocking More Barrels: Driving Reserves Growth through Exploration, Local Capabilities, and Adaptive Technology”, she identified three priorities that must shape the industry’s next phase: exploration and reserves replenishment, stronger indigenous technical capacity and the effective adoption of technology.
On exploration, Verheijen stressed that production growth cannot continue without a consistent pipeline of new discoveries, proper resource appraisal and development.
She called for credible exploration programmes supported by dependable geological data and development strategies that consider infrastructure requirements and available markets.
While improved reservoir understanding, infill drilling and enhanced recovery can help increase output from existing assets, she maintained that these interventions must complement fresh exploration rather than replace it.
Indigenous participation also featured prominently in her assessment of the industry’s future.
The increasing involvement of Nigerian independent producers offers opportunities to accelerate development across onshore and shallow water operations, while international operators retain important roles in deepwater and integrated gas projects.
However, Verheijen cautioned that ownership alone does not establish industry competence. Nigerian companies must demonstrate technical excellence, sound corporate governance, stronger financial capacity and responsible management of petroleum assets.
She argued that local content must deliver more than participation percentages. Its real value should be reflected in Nigerian engineers, fabrication companies, technology providers and service businesses capable of competing internationally.
Technology presents another opportunity to improve the sector’s performance. Advanced seismic interpretation, reservoir modelling, digital monitoring, methane measurement and artificial intelligence can strengthen exploration decisions and operational efficiency.
Their adoption, however, must produce measurable commercial improvements, including reduced uncertainty, lower operating costs, better resource recovery, less downtime and safer operations.
Beyond the upstream industry, Verheijen made a strong connection between petroleum sector performance and Nigeria’s broader economic prospects, arguing that oil, gas and electricity must function as complementary parts of a national energy and industrial strategy.
Oil production remains important to export earnings, foreign exchange generation and public revenue. Gas, meanwhile, offers opportunities to support electricity generation, manufacturing, agricultural processing and export oriented industries.
Yet the ability to develop these opportunities depends on whether domestic consumers can provide a dependable market for producers.
Verheijen identified outstanding debts across the electricity value chain, inadequate metering, weak revenue collection and unreliable payments to suppliers as problems requiring attention.
These weaknesses, she explained, affect more than electricity distribution. They undermine the commercial foundations needed to attract investment into gas production and supply.
Resolving legacy debts, improving metering and strengthening revenue collection must therefore accompany efforts to expand gas development. She also highlighted the importance of targeted support for vulnerable consumers alongside transparent commercial arrangements that encourage reliable supply.
Her argument places the electricity market firmly within the country’s petroleum investment agenda. Without dependable customers and sustainable payment arrangements, additional gas resources cannot automatically translate into viable commercial projects.
The competition for international investment presents another test for Nigeria’s reform ambitions.
JKNewsMedia.com also reports that Verheijen pointed to developments in Guyana and across Africa as evidence that petroleum producing countries must continually strengthen their investment propositions to attract long term capital and technical expertise.
Nigeria, she said, must compete through credible fiscal arrangements, predictable regulation, quality infrastructure, efficient project execution and reliable commercial relationships.
The administration wants an investment environment capable of sustaining petroleum development even when international oil prices weaken or additional supplies enter the global market.
For international oil companies, sovereign funds, development finance institutions and energy infrastructure investors, the ability to maintain commercial competitiveness across changing market conditions remains central to long term investment decisions.
Ultimately, the address challenged the industry to look beyond production volumes when assessing the success of Nigeria’s energy reforms.
Verheijen argued that the country’s resources must support a more productive economy through increased domestic manufacturing, greater processing of locally produced materials and stronger supply to neighbouring economies.
That ambition requires a closer relationship between petroleum production, industrial development, reliable electricity, employment creation, technology transfer and responsible public revenue management.
She identified four measures, reserves, revenues, reliability and responsibility, as essential tests for evaluating the progress of the reforms.
The challenge now rests on consistent policy implementation, institutional cooperation and the ability of government and industry to deliver projects rather than simply announce investment intentions.
The IMA gas field offers a powerful illustration of the difference between possessing natural resources and putting them to productive use. Its long journey to investment approval also underscores the consequences of delays that Nigeria can no longer afford to overlook.
At NAPE 2026, the message was that the country’s next phase of petroleum development must deliver more than discoveries and investment commitments. It must produce sustained output, strengthen domestic industrial capacity and generate economic opportunities that extend beyond the oil and gas industry.
—
Share Your Story with us!
Advertise with us!
Publicity for a product, service, or event!
Contact: WhatsApp Only: +2348039560647
Email: jkmediapress@gmail.com
