President Bola Ahmed Tinubu has praised the $800 million Final Investment Decision (FID) on the Ima Gas Project, highlighting it as evidence that his administration's reforms are unlocking long-standing gas resources and drawing new investment into Nigeria's energy sector. The project, developed by AMNI International in partnership with TotalEnergies, is expected to produce 300 million standard cubic feet of gas daily at peak production.
The Ima gas resource, located offshore in Oil Mining Leases (OMLs) 112 and 117, was discovered in 1973 but remained undeveloped for over five decades. Despite its significant reserves and potential to supply feedgas to Nigeria LNG Limited, it had not been utilized. The $800 million FID, announced on September 23, paves the way for the resource to be developed, supporting investment, industrialization, employment, and economic growth.
This project is the fourth major gas development to reach FID since Tinubu assumed office, following the Iseni, Ubeta, and HI projects. According to Tinubu, the development demonstrates the impact of reforms undertaken by his administration to make Nigeria's oil and gas industry more attractive to investors. He emphasized that potential alone does not create jobs, finance businesses, or improve lives, and that his administration's role is to create conditions for natural resources to be turned into productive investments.
The Ima project underscores the growing role of Nigerian companies and financial institutions in financing and executing major developments in the country's upstream petroleum industry. AMNI International, a Nigerian-owned exploration and production company, holds a majority interest in the asset. Nigerian financial institutions arranged 77% of the project's financing, and about 60% of the project's workforce is expected to be drawn from host communities, including Bonny, Finima, and Andoni in Rivers State.
Special Adviser to the President on Energy, Olu Arowolo Verheijen, noted that the Ima project demonstrates the practical outcome of the reforms designed to achieve this goal. He stated that Nigeria has never lacked resources, but the challenge has been creating commercial and investment conditions required to move those resources into projects that employ Nigerians, create opportunities for Nigerian businesses, generate revenues, and support economic growth.
The Presidency said the Ima project is part of a broader strategy to convert Nigeria's extensive gas reserves into productive economic assets. Under the administration's gas strategy, increased production is expected to support liquefied natural gas exports and foreign exchange earnings, provide feedstock for industries, boost fertilizer and petrochemical production, and support more reliable electricity supply. This strategy is also expected to open opportunities for Nigerian businesses, contractors, and workers across the gas value chain.
Tinubu emphasized that his administration's objective is to ensure that the country's natural resource endowments translate directly into economic opportunities and improved living standards for Nigerians. He stated that natural resources have value only when they are converted into opportunities for the people, and that the goal is to ensure that Nigeria's gas powers Nigerian prosperity.
Key points
- The Ima gas project is expected to produce 300 million standard cubic feet of gas daily at peak production.
- Nigerian financial institutions arranged 77% of the project's financing.
- The project is part of a broader strategy to convert Nigeria's extensive gas reserves into productive economic assets.
