President Bola Tinubu has welcomed the $800 million Final Investment Decision (FID) on the Ima Gas Project, a significant milestone in his administration's efforts to harness Nigeria's vast gas resources. The project, developed by AMNI International in partnership with TotalEnergies, is expected to produce 300 million standard cubic feet of gas per day at peak. Located offshore in OMLs 112 and 117, the Ima gas resource was discovered in 1973 but remained undeveloped for over five decades.
The Ima gas project marks the fourth major gas project to reach FID since President Tinubu assumed office, following the Iseni, Ubeta, and HI FIDs. These FIDs demonstrate 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. The projects aim to create jobs, generate revenues, and expand economic opportunities for Nigerians.
President Tinubu emphasized that the FID on Ima demonstrates what is possible when investors are provided with a competitive, predictable, and enabling environment. He highlighted his administration's commitment to unlocking more of Nigeria's gas resources to power industries, expand exports, create jobs, and build lasting prosperity. Since assuming office on May 29, 2023, Tinubu has prioritized reforms to reverse years of underinvestment in Nigeria's oil and gas industry.
The Petroleum Industry Act of 2021 laid an important foundation, but several undeveloped projects lacked the fiscal and commercial conditions needed to become viable. In 2024, Tinubu issued a series of presidential directives to improve fiscal competitiveness, shorten contracting timelines, and reduce costs. These directives were developed by a team led by the Special Adviser to the President on Energy.
The Ima gas project also demonstrates the growing depth of Nigerian participation across the energy value chain. AMNI International, a Nigerian-owned exploration and production company, holds a majority interest in the asset. This illustrates the increasing capacity of indigenous companies to participate in and lead significant developments in Nigeria's upstream sector.
Nigerian financial institutions have arranged 77% of the project's financing, with around 60% of the project workforce expected to come from host communities, including Bonny and Finima. The project is expected to have a positive impact on the local economy and create new opportunities for Nigerians.
The FID on the Ima gas project was announced on September 23, and presidential spokesperson Bayo Onanuga confirmed that the project marks a significant milestone in Nigeria's efforts to harness its gas resources. With the Ima gas project, Nigeria is poised to unlock a major source of revenue and create new opportunities for economic growth and development.
Key points
- The Ima gas project is expected to produce 300 million standard cubic feet of gas per day at peak.
- Nigerian financial institutions have arranged 77% of the project's financing.
- The project is expected to create new opportunities for Nigerians, with around 60% of the workforce coming from host communities.
