.As FG unveils strategic reforms to make Nigeria energy hub
.Says naira crude sale reducing FX risks, transaction costs
.We’re driving energy solutions that’ll benefit Africa—Lokpobiri
CHIGOZIE AMADI
The federal government has re-assured global business leaders of its commitment to continuous provision of good fiscal , legal and enabling business environment aimed at attracting local and foreign investments, stimulating economic growth, and creating jobs in Nigeria.
It also expressed that the introduction of the sale of crude oil in Naira was a strategic move to enhance operational efficiency of local refineries by reducing foreign exchange risks and transaction costs.
President Bola Tinubu made this known on Tuesday, while officially declaring the eight edition of the Nigeria International Energy Summit (NIES 2025) open in Abuja.
The 2025 summit has its theme as “Bridging Continents: Connecting Investors Worldwide with Africa’s Energy Potential”
The president who was represented by Dr Doris Uzoka-Anite, Minister of State for Finance expressed his unwavering confidence in Nigeria’s potential to become a global powerhouse in the energy industry.
He attributed this potential to strategic reforms, innovative policies, and a steadfast commitment to sustainable development. “I stand before you with ongoing confidence in Nigeria’s potential to be a global powerhouse in the energy sector,” he stated.
He noted that some of the key assurances he has made regarding investments in Nigeria include: improved infrastructure, simplified regulatory environment, enhanced security, investment incentives and good governance.
Speaking on crude oil sales , Tinubu said the move had also fostered a stronger and more stable domestic market.
“In order to ensure that the local refineries are very competitive, thereby lowering the cost of the retail price of petroleum products for our populace, we introduced the sale of crude oil in Naira.
“By denominating crude sales in Naira, we are supporting the local currency and creating a more resilient economy.
“This initiative is expected to result in more affordable petroleum products for our citizens, ultimately improving their standard of living and stimulating economic growth.
“This is also going to alleviate the effects of the fuel subsidy removal,” the President said.
He said in 2025, the country had continued witnessing a renaissance in the oil and gas sector, characterised by transformative initiatives and significant milestones.
He said for close to two years, his administration had remained resolute in driving reforms and milestones in Nigeria’s energy sector and the economy at large.
He said these reforms, including the removal of the fuel subsidy and Forex liberalisation which were two main reforms of the administration in the first year had liberalised the economy, making it an investment destination of choice.
Highlighting some key achievements that positioned the economy as a global energy powerhouse, he said Nigeria’s selection as a host country for the headquarters of the African Energy Bank was a historic milestone in the sector.
He said the achievement reaffirmed Nigeria’s leadership in Africa’s energy landscape and commitment to driving sustainable development across the continent.
“By securing this prestigious institution, we have positioned Nigeria as the hub for energy financing, fostering investment, innovation and job creation.
“This milestone underscores our dedication to energy security, economic growth and regional cooperation, ensuring a brighter, more prosperous future for all Nigerians and Africans.
“We have also issued far-reaching executive orders that have seen a return of investment into our oil and gas sector.
“In the upstream sector, we have witnessed increased crude oil production owing to strategic interventions in security, development and investment incentives,” the President said.
He said the inauguration of the Presidential Executive Order on Oil and Gas Sector Reforms also streamlined processes, fast-tracked licensing rounds and encouraged indigenous participation that were fostering local content development.
“We have seen increasing investment announcements and innovative ways to support the oil and gas sector and we are open to receiving more of such exciting announcements,” he added.
Tinubu, while expressing determination towards completion and operationalisation of key gas infrastructures, including the Ajaokuta Kaduna Kano Gas Pipeline Project, said it would strengthen the capacity to supply clean energy to industries and households.
He said the implementation of the Presidential Compressed Natural Gas Initiative (P-CNGI) was also transforming the transportation sector, reducing dependence on one single source of fuel, which used to be fuel.
According to him, the administration is currently implementing series of comprehensive reforms in the fiscal and tax policies aim to create more business-friendly environment and attract both local and international investments.
He said by simplifying the tax regulations, offering incentives and ensuring a more transparent and predictable fiscal framework, the reforms aimed to remove barriers to entry and support the growth of businesses in Nigeria.
These measures, he said would not only make it easier for companies to invest and operate in the country, but also to stimulate economic development, growth and prosperity of our nation.
He said with the coming on stream of the Port Harcourt and Warri refineries, the country had more refining capacity to process crude and also deliver these products at a cheaper cost to Nigerians.
“We are actively developing a hydrogen policy to attract investors and integrate hydrogen in our energy mix,” he said
The Federal government also, hinted that Nigeria’s oil and gas industry has witnessed significant transformation since the enactment of the Petroleum Industry Act (PIA) in 2021.
Delivering his address, the Honorable Minister of State for Petroleum Resources, Ekperikpe Ekpo, highlighted the notable achievements made so far, like the successful commercialization of the Nigerian National Petroleum Corporation (NNPC), establishment of host community development trusts, and issuance of the first petroleum exploration license under the PIA. These milestones demonstrate the government’s commitment to creating a more competitive and transparent oil and gas industry.
He said that the gas sector has also undergone remarkable transformation, with substantial advancements in infrastructure, policy reforms, gas utilization, and domestic initiatives.
According to him “Over the past two years, Nigeria’s gas sector has undergone remarkable transformation, marked by substantial advancements in infrastructure, policy reforms, gas utilization, and domestic initiatives.
“These milestones highlight our unwavering commitment to the renewed hope agenda of President Bola Ahmed Tinubu administration through maximizing our abundant natural gas resources to drive economic growth, enhance energy security, and support the global transition towards cleaner energy solutions.
In recognition of natural gas as a catalyst for Nigeria’s economic growth, the Minister pointed that President Bola Ahmed Tinubu has reaffirmed the government’s commitment to the Decade of Gas initiative.
The policy aims to position Nigeria as a leading gas-powered economy by 2030 through infrastructure expansion, increased domestic utilization, and export growth.
He noted that Tinubu’s administration has reaffirmed its commitment to the Decade of Gas initiative, aiming to position Nigeria as a leading gas-powered economy by 2030.
According to him, Key Projects and Initiatives:Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline: A 614-kilometer pipeline is expected to enhance gas supply to industrial and commercial hubs, stimulate industrialization, create jobs, and attract investments.
Also, the UTM Offshore Limited’s Floating LNG Plant: A project that will process gas from Seplat’s Oil Mining Lease 104, producing 2.8 MTPA of LNG and 500,000 metric tons of LPG.
Brass Fertilizer and Petrochemical Plant: An agreement between Nigeria and international energy giants to supply 270 million standard cubic feet of gas per day, generating $1.5 billion annually in export revenue.Nationwide CNG Initiative; a program aimed at providing cost-effective and environmentally friendly transportation alternatives, with over 100,000 vehicles targeted for conversion and a $200 million investment in CNG infrastructure.
These initiatives demonstrate Nigeria’s commitment to leveraging natural gas for economic growth, industrialization, and energy transition. As the country continues to develop its gas sector, it is poised to become a global energy hub and drive Africa’s economic renaissance, she said
On his part, Hon. Minister of State, Petroleum Resources (oil),Sen. Heineken Lokpobiri pointed that the theme of this year’s summit, proves the pivotal role that Africa, and indeed Nigeria, plays in shaping the future of global energy.
Lokpobiri explained further that the theme highlights the critical need to bridge geographical, economic, and technological gaps to unlock Africa’s energy potential.
According to him, It signifies the importance of connecting global investors to opportunities within Africa’s vast energy landscape. “This theme is timely, as the world faces an urgent need to diversify energy sources, ensure energy security and foster collaboration in meeting global demand”
“For Nigeria, this summit represents an opportunity to demonstrate our leadership in driving energy solutions that benefit the continent and contribute to the stability of the global energy market”.
“As the largest oil producer in Africa and a key player in the global energy market, Nigeria has remained unwavering in her commitment to energy development. Over the past two years, the oil industry in Nigeria has undergone significant transformation marked by historic milestones and progressive reforms aimed at ensuring energy security, enhancing domestic refining capacity, attracting investments, and optimising revenue generation.
“Permit me to spotlight some of the remarkable achievements and key developments within our petroleum sector.
We have witnessed an increase in oil production, which, for the first time in years, we met our OPEC quota, and if you add condensates, we are currently producing approximately 1.8 million barrels per day. While this marks significant progress from where we began, the efforts of this administration recognise that we are still far from where we aspire to be”
“We have also witnessed the successful granting of ministerial consent for several significant acquisitions of international oil company (IOC) assets by indigenous companies.
Oando Petroleum and Natural Gas Company Limited secured approval to acquire a full equity stake in Nigerian Agip Oil Company (NAOC) from Italy’s ENI. Chappal Energies, through its project vehicle Odinmim, obtained consent to acquire Equinor Nigeria’s assets, including an interest in OML 128 and a stake in the Agbami Oil Field operated by Chevron. Additionally, Seplat Energy received ministerial approval and finalized its acquisition of Mobil Producing Nigeria Unlimited (MPNU), a subsidiary of ExxonMobil.
Significantly, the Minister said “under the decisive leadership of His Excellency President Bola Ahmed Tinubu, we have successfully completed them, thereby expanding the footprint of indigenous players in our oil and gas sector. So far, their increasing production levels are already signalling a promising future.
These approvals and acquisitions signify a strategic shift, with indigenous companies increasingly taking over assets from IOCs to enhance local participation and boost production in Nigeria’s oil and gas industry”.
Worthy of note Is the investment made by operators in the petroleum sector. One notable example is the final investment decision by Shell Nigeria Limited to invest 5 Billion Dollars in Bonga North.
“I can assure you that in the coming months, we will witness even more groundbreaking announcements. (take a short pause)”the Minister assured.
However, Lokpobiri said this would not have been possible without the investment-friendly policies of His Excellency President Bola Ahmed Tinubu led Government, whose executive order has reduced contracting cycles, implemented sustainable practices that promote regulatory transparency and improved investors’ confidence, provided better fiscals and other incentives that have once again made the Nigerian Petroleum industry; the leading investment destination in Africa.
Earlier in his welcome address, Permanent Secretary, Ministry of Petroleum Resources, Amb.Nicholas Agbo, recounted that NIES has evolved into Nigeria’s flagship energy platform, cementing its status as the country’s only government-sanctioned oil and gas summit,Since its inception in 2018.
Endorsed at the highest levels of government, NIES has consistently served as a catalyst for energy policy evolution, market-driven strategies, and sustainable development.
Amb. Agbo said the summit’s success is evident in its growth from a national gathering into a globally recognized platform that bridges continents and sectors; as
the past seven editions have set a strong foundation for the 8th Edition, instilling confidence in NIES 2025’s potential.
He pointed out that the theme serves as a global call to action for cooperation and strategic investments.
According to him, Africa, with its vast energy resources, is at a crossroads of immense opportunities and the global push for sustainable energy solutions.
Nigeria, as the continent’s largest oil producer and a leading gas powerhouse, is committed to playing a pivotal role in this evolving energy landscape.
“In line with our commitment to advancing Africa’s energy security and growth, I am pleased to highlight Nigeria’s ongoing efforts to establish the African Energy Bank (AEB).
This landmark initiative, spearheaded by the Ministry of Petroleum Resources in collaboration with the African Petroleum Producers Organization (APPO), aims to create a dedicated financial institution focused on unlocking energy investments across the continent”
The AEB will serve as a vital funding vehicle to bridge Africa’s energy infrastructure gaps, catalyze upstream, midstream, and downstream projects, and drive sustainable energy solutions that align with the continent’s unique needs, he said.
These initiatives demonstrate Nigeria’s commitment to leveraging natural gas for economic growth, industrialization, and energy transition. As the country continues to develop its gas sector, it is poised to become a global energy hub and drive Africa’s economic renaissance.
