In a significant development for Nigeria’s oil and gas sector, Minister of Finance and Coordinating Minister of the Economy, Wale Edun, revealed a promising influx of approximately $7 billion in investment pledges. This surge is attributed to the implementation of new incentive frameworks by President Bola Tinubu’s administration. Edun made these remarks during a ministerial press briefing held in Abuja on Tuesday.
The minister emphasized that these investments, which had long remained dormant, awaiting favorable economic conditions, have now been mobilized by President Tinubu’s energy sector initiatives. Speaking on the transformative effects of these policies, Edun underscored their role in fostering economic prosperity and generating employment opportunities across the nation.
Of particular focus were the administration’s efforts to promote Compressed Natural Gas (CNG)-fueled conversion programs as a key driver of growth. “The pivot to CNG is a government policy not just for vehicles but also for generators, which must either run on CNG, be solar-based, or electric vehicles,” Edun stated, outlining the comprehensive approach toward sustainable energy solutions.
Highlighting the recent executive orders signed by President Tinubu aimed at bolstering the investment environment in the oil and gas industry, Edun reiterated that these directives were formulated following extensive consultations with major stakeholders. The primary objective is to streamline the contracting process, significantly reducing the cycle time to just six months.
The news comes against the backdrop of longstanding challenges facing Nigeria’s oil and gas sector, including insecurity, oil theft, and policy inconsistency, which have hindered the attraction of sufficient capital investments. Notably, international oil companies like TotalEnergies have redirected investments to other regions such as Angola, citing perceived risks and challenges in Nigeria’s operating environment. Similarly, companies like Shell Petroleum Development Company of Nigeria Limited (SPDC) are reassessing their portfolios, taking into account factors such as health, security, and environmental policies in the Niger Delta region.
The announcement signals a positive step forward for Nigeria’s energy sector, as the government aims to create a conducive environment for investment while addressing longstanding issues that have impeded growth and development.
