Federal Government Outlines Broader Gas Transition Strategy To Secure Firm Energy Security

The federal government has described gas as central to the administration’s economic agenda because of its role in electricity generation, manufacturing, transportation, fertiliser production and cleaner cooking.

“Gas has been a priority within that reform agenda because Nigeria is, as you all know, even more gas-rich than it is oil-rich, and the gas is arguably the most important physical resource for industrialisation,” special adviser to the President on  Oil and Gas, Olu Verheijen said. 

According to her, government is now promoting gas production activities to secure firm energy security which will at the same create value in its industrialization efforts.

Verheijen, disclosed this at the Africa Interviews Sustainability Forum 2026 in Lagos. 

She also said government has settled more than ₦100 billion in outstanding gas debts since January 2026, in a move aimed at strengthening the gas-to-power value chain and improving  electricitysupply.

The payments were made under the Presidential Power Sector  Financial Reform Programme and comes as Nigeria continues to grapple with electricity supply challenges, with gas supply and payments to producers remaining important to the performance of the power sector. Clearing outstanding obligations is expected to support confidence across the gas-to-power chain, although sustained improvement will also depend on regular payments, reliable gas delivery and the financial health of electricity market participants.

Verheijen also highlighted government measures introduced since 2023 to encourage the use of liquefied petroleum gas, LPG, for household cooking. These include import duty waivers and zero-rated value-added tax measures for LPG and gas cylinders, intended to make cleaner cooking alternatives more accessible and reduce dependence on firewood.

“A gas-rich nation cannot be comfortable while families remain stuck in the age of firewood,” she said.

According to the presidential adviser, reforms under President Bola Tinubu’s administration are designed to remove barriers to investment and unlock Nigeria’s gas resources for industrialisation, electricity generation and economic growth.

She disclosed that Nigeria had recorded four final investment decisions, FIDs, on gas projects in less than two years, while average daily gas production had increased from about seven billion cubic feet to eight billion cubic feet.

Nigeria holds more than 200 trillion cubic feet of proven gas reserves, Verheijen said, but stressed that the country must attract sustained investment to convert its resource base into economic value.

“A country can sit on enormous natural wealth and fail to turn it into energy to power industry, industries that create jobs and jobs that help us grow incomes,” she said.

“What turns resources into prosperity is investment, consistent investment that responds to predictable incentives and a stable environment,” she added.

Verheijen said Tinubu had directed his administration to identify and address the factors preventing investment from keeping pace with Nigeria’s economic potential.

“When President Bola Tinubu assumed office in 2023, he gave us a very clear mandate: understand why investment has not moved at the pace of Nigeria’s potential and fix it,” she said.

The four gas project investment decisions, including the Ima project in September 2026, reflect growing activity in the sector, Verheijen said. She also noted the increasing contribution of indigenous producers to domestic gas supply.

Addressing Africa’s energy transition, she argued that governments across the continent should balance environmental sustainability with energy security, industrial development and job creation.

“For Africa, the energy transition must mean transformation, molecules converted into megawatts, fertilizer, petrochemicals, cleaner mobility, manufacturing, jobs and exports,” she said.

Verheijen also maintained that African countries should determine the pace of their energy transitions according to their development priorities and economic circumstances, rather than have those decisions imposed externally.

“The energy transition must also mean agency. Africa is right to decide for itself how fast it decarbonises, rather than having those choices made for us by others. It is about affirming our right to be the authors of our own energy transition,” she said.

She further emphasised the need to measure and reduce methane emissions from gas operations while ensuring that host communities benefit meaningfully from resource development.

The settlement of the outstanding gas debts represents a step towards addressing financial constraints within Nigeria’s gas-to-power chain. However, the broader test will be whether improved payment discipline and  investment translate into more reliable gas supplies, stronger  electricitygeneration and better power delivery to homes and businesses.

Meanwhile, Renaissance Africa Energy (RAE) says it’s growing its oil production to 500,000 barrels a day by 2030.

The indigenous firm also said it will alongside this projection expand gas supply as part of broader efforts to improve Nigeria’s energy security and accelerate industrial development.

The company also plans to grow its production portfolio to one million barrels of oil equivalent per day by 2030, supported by additional gas production and investments in exploration, development and infrastructure-led opportunities.

The Managing Director and Chief Executive Officer of RAE, Engr. Tony Attah, disclosed this in a keynote address delivered on his behalf by the company’s Vice President, Exploration, Dr. John Bosco Uche, at a pre-conference workshop organised by the Nigerian Association of Petroleum Explorationists (NAPE).

The workshop, themed: “Navigating Nigeria’s Upstream Future: Exploration and Development Approaches vs. Energy Security Demand,” examined strategies for increasing petroleum reserves, accelerating project delivery and meeting the country’s growing energy needs.

Attah said Nigeria’s energy security depended not merely on its abundant oil and gas resources but on its ability to convert those resources into reliable energy supply, industrial growth, employment and improved living standards.

The Renaissance helmsman noted that despite the country’s substantial hydrocarbon resources, millions of Nigerians still lacked reliable access to energy, stressing that the real measure of energy security was the extent to which resources powered homes, industries, hospitals and schools.

According to him, exploration, development and production must operate as an integrated value chain to ensure that Nigeria meets its current energy requirements while sustaining supply for future generations.

“Exploration creates options. Development transforms options into projects. Production converts projects into energy, and energy security exists only when all these three operate as an integrated value chain,” he said.

The Renaissance CEO emphasised the need for continuous investment in exploration to replenish reserves, warning that failure to discover new resources would undermine future production and threaten long-term energy security.

He explained that every barrel produced today depended on discoveries and investments made in previous years, making reserve replacement essential to sustaining Nigeria’s petroleum industry.

Attah also stressed the importance of accelerating the journey from discovery to first production, arguing that the speed of project delivery had become as important as the volume of resources available.

“Energy security is not only about volume; it is about velocity,” he said, adding that discoveries that take decades to reach production could fail to address the immediate energy needs of a growing economy.

He identified infrastructure-led exploration as a key strategy for shortening project timelines and improving the commercial value of discoveries, noting that Renaissance had adopted the approach as a central pillar of its near-term strategy.

According to him, leveraging existing infrastructure, data and technical knowledge could help unlock additional value from mature assets while reducing the time and cost required to bring resources to market.

The company’s strategy, he said, was anchored on three principles: safely receiving inherited assets, stabilising operations and growing production.

Attah disclosed that within its first 100 days of assuming operatorship of the assets in March 2025, Renaissance added approximately 100,000 barrels of oil to its portfolio and Nigeria’s production.

He added that the company had sustained gas exports while increasing domestic gas supply, with further expansion planned to support the country’s industrialisation and energy needs.

On the role of natural gas, Attah described the resource as a major driver of Nigeria’s economic transformation, noting its potential to strengthen manufacturing, improve industrial competitiveness, create jobs and stimulate economic growth.

“Gas is not merely a transition fuel for Nigeria; it is our transformation fuel,” he said.

He maintained that Nigeria could achieve greater economic benefits by deploying its gas resources to support industrial development and expand access to reliable energy.

The Renaissance CEO further highlighted the importance of indigenous capabilities, technology and human capital development in building a sustainable upstream industry.

He said the growing participation of indigenous operators represented not just a transfer of assets but also a transfer of responsibility for developing the country’s resources and creating long-term value.

Attah also identified artificial intelligence, digital technologies and advanced software as tools for improving exploration decisions, maturing prospects and enhancing operational performance.

He said Renaissance had tested several digital solutions and planned to deploy additional technologies to improve the identification and development of exploration opportunities.

On workforce development, he announced that the company planned to recruit more than 100 young graduates by November 2026 to strengthen its workforce and contribute to building local technical capacity.

He added that sustainable development required the industry to balance environmental responsibility with the need to provide affordable and reliable energy for economic progress.

Attah urged industry stakeholders to focus on execution, investment and collaboration, stressing that Nigeria’s petroleum wealth would deliver lasting benefits only when resources were continuously discovered, developed and produced at a pace that matched the country’s energy demand.

He concluded that effective leadership with a clear vision and disciplined project execution would be essential to converting the country’s oil and gas potential into energy security, industrialisation and shared prosperity.