President Bola Ahmed Tinubu has welcomed the $800 million Final Investment Decision (FID) on the Ima Gas Project, a major milestone in his administration's drive to unlock Nigeria's vast gas resources. The project, developed by Nigerian independent AMNI International in partnership with TotalEnergies, is expected to produce about 300 million standard cubic feet of gas per day at peak. This development marks a significant step towards harnessing Nigeria's gas potential for economic growth.
The Ima gas resource, located offshore in OMLs 112 and 117, was discovered in 1973 but remained undeveloped for over five decades. Despite its significant reserves and potential as a source of feedgas for Nigeria LNG Limited, the resource remained untapped, unable to contribute meaningfully to Nigeria's economy. The FID, announced on September 23, has changed this, paving the way for the project's development and potential economic benefits.
This project marks the fourth major gas project to reach Final Investment Decision since President Tinubu assumed office, following the Iseni, Ubeta, and HI FIDs. These FIDs reflect the growing momentum of investment in Nigeria's gas sector and the administration's drive to convert the country's vast gas resources into productive projects that create jobs, generate revenues, and expand economic opportunity for Nigerians.
President Tinubu emphasized that for over fifty years, the gas beneath Ima remained a resource with enormous potential, but potential alone does not create jobs, finance businesses, or improve the lives of the people. His administration has prioritized reforms to reverse years of underinvestment in Nigeria's oil and gas industry, including the Petroleum Industry Act of 2021 and a series of Presidential Directives aimed at improving fiscal competitiveness and reducing costs.
The Ima gas project demonstrates the growing depth of Nigerian participation across the energy value chain, with AMNI International, a Nigerian-owned exploration and production company, holding a majority interest in the asset. Nigerian financial institutions have arranged 77 percent of the project's financing, with around 60 percent of the project workforce expected to come from host communities in Rivers State.
The Tinubu administration's gas strategy aims to focus not simply on producing more gas, but on putting that gas to work: supporting LNG exports and foreign exchange earnings, providing feedstock for industry, enabling fertilizer and petrochemical production, supporting a more reliable power supply, and creating new opportunities for Nigerian businesses and workers. The President stated that natural resources have value only when they are converted into opportunities for the people.
The President's Special Adviser on Energy, Ms Olu Arowolo Verheijen, noted that the story of Ima is ultimately the story of what the reforms are designed to achieve: creating the commercial and investment conditions required to move Nigeria's resources from beneath the ground into projects that employ Nigerians, create opportunities for Nigerian businesses, generate revenues, and support economic growth. The project is expected to contribute to Nigeria's prosperity, with the President affirming that Nigeria's gas will power Nigerian prosperity.
Key points
- President Tinubu's administration has prioritized reforms to reverse years of underinvestment in Nigeria's oil and gas industry.
- The Ima gas project marks the fourth major gas project to reach Final Investment Decision since President Tinubu assumed office.
- Nigerian financial institutions have arranged 77 percent of the project's financing, with around 60 percent of the project workforce expected to come from host communities.
