By Olu Verheijen
THE QUESTION that would naturally follow any extended discussion of reforms is obvious – What has the administration’s ambitious reform program delivered so far?
Because the reforms targeted actual bottlenecks and real projects in the investment pipelines, in April this year, FID was reached on the Ubeta Non-Associated Gas project, a half-a- billion-dollar project.
The Ubeta field was discovered in 1965 and has finally been unlocked to deliver prosperity of multitudes of Nigerian lives and businesses.
For deepwater gas, we have gone from a total absence of a fiscal framework to now having one for the first time in our history.
Nigeria’s deepwater oil projects now deliver competitive returns. Nigeria has now moved from bottom quartile of 13 indexed countries to top three.
We are now positioned to tap into $90 billion in financing that will be available for deepwater projects around the world, by IOCs that are already operating in Nigeria.
Accessing 20 percent of this, would be more than enough to bring 5 major deepwater projects on-stream, unlocking 1.3 billion barrels of oil equivalent (boe).
We are gearing up for our first FID on a greenfield deepwater development since the last one (Egina) in 2013.
Going into 2025, we expect the investment momentum to quicken, proving beyond any doubt, that President Tinubu’s energy reform agenda is truly revolutionary.
Our challenges are addressable, and fixable.
All these new investments will have major implications for the Nigerian economy.
The foreign exchange inflows will help with exchange rate management and macroeconomic stability; local economies will benefit from the increased spending on construction and hiring; skill-building and technology transfer will take place.
Importantly, with the industry infrastructure being developed, each new investment will ensure that subsequent projects are possible at lower costs and with the guarantee of greater returns – creating a virtuous cycle of new investments.
It is still early days for our reform journey, but I am an optimist, you have to be one to do this job.
So, we look to the future with excitement, not fear. We know that when we take the right decisions, we will see the right results.
Olu Verheijen is a Special Adviser to the President
