Fed Govt unveils major energy reforms at US-Nigeria strategic energy dialogue

At the inaugural US-Nigeria Strategic Energy Dialogue, the Nigerian government unveiled significant energy sector reforms aimed at addressing the energy needs of 100 million people.
The reforms feature five new presidential directives to cut the cost and time for contracting gas projects and the launch of a $550 million upstream gas project to bolster the country’s gas industry.
Special Adviser to the President on Energy, Olu Verheijen, presented these initiatives during a luncheon hosted by the U.S. State Department.
The Dialogue, initiated in June 2023, is focused on fostering U.S.-Nigeria cooperation to advance shared goals of energy security and climate action.
According to a statement issued by Morenike Adewunmi, the contact person, Stakeholder Management, Office of the Special Adviser to the President on Energy, the forum offers a platform for government officials and private sector leaders from both countries to collaborate on pressing energy challenges.
Verheijen said: “Nigeria’s energy reforms are centred on creating a robust regulatory framework to attract investment, particularly in gas production for power generation, transportation, and clean cooking. The goal is to close the energy access gap for 100 million Nigerians who still lack reliable power. This dialogue allows us to align with partners and ensure targeted collaboration with tangible outcomes.”
Key reforms introduced since President Bola Ahmed Tinubu took office in June 2023 include measures to enhance the gas-to-power value chain, improve cash flow in electricity distribution, and reduce carbon emissions from gas production.
Verheijen noted that five new presidential directives have been issued to streamline contracting for gas projects, cutting both costs and time, adding that these reforms aim to unlock up to $2.5 billion in oil and gas investments.
In addition to regulatory changes, a $550 million upstream gas project has been launched, which is expected to produce 350 million standard cubic feet of gas per day.
Verheijen expressed optimism about Nigeria’s energy future, particularly the role of gas as a transition fuel in meeting climate goals.
“We see resilient demand for gas through the energy transition. It’s an available, cost-effective backup to renewables and cuts emissions by half,” she said.
Geoffrey R. Pyatt, Assistant Secretary of the U.S. State Department’s Bureau of Energy Resources, underscored the importance of the dialogue in advancing shared objectives.
“Together, we’re strengthening energy security, decarbonization, and economic growth,” Pyatt remarked.
The Nigerian delegation, led by Minister of State for Petroleum Resources, Ekperikpe Ekpo, included key officials from the energy sector, while the U.S. delegation featured representatives from USAID, the Department of Energy, and the U.S. Trade and Development Agency.
The event also marked the launch of the Clean Energy Alliance of Nigeria (CLEAN), a U.S.-backed initiative designed to promote investment in Nigeria’s clean energy sector.