- Federal Government aimed for 20 hours of daily electricity by 2027, dependent on securing investment in oil and gas
- Olu Verheijen emphasised the need for investment to meet power goals amid Nigeria's national grid breakdowns
- New fiscal incentives for deep offshore oil and gas exploration unveiled to attract global investments
The Federal Government has announced plans to supply Nigerians with a minimum of 20 hours of electricity per day by 2027, contingent upon securing adequate investment in the country's oil and gas sector, which is currently underperforming.
Olu Verheijen, the Special Adviser to the President on Energy, shared this information at the Energy Week in Cape Town, South Africa, according to a statement issued by Abiodun Oladunjoye, the State House Director of Information and Publicity, on Thursday, November 7.
Nigeria aims for 20 hours of daily electricity by 2027
“By 2027, Nigeria aims to ensure 20 hours of electricity daily for consumers in urban areas and industrial hubs,” Verheijen stated.
The statement from Verheijen followed the frequent breakdowns of Nigeria's national power grid, which have triggered widespread blackouts nationwide.
The statement was titled, ‘At African Energy Week in Cape Town, Olu Verheijen Invites Global Players to Invest in Nigeria’s Energy Sector.’
Verheijen outlines Tinubu administration’s efforts to reform power sector
Speaking at Energy Week, Verheijen highlighted the Tinubu administration’s ongoing efforts to reform Nigeria’s power sector, with a focus on ensuring more reliable electricity for the 86 million Nigerians who are currently underserved.
According to her, the scheme seeks to strengthen revenue assurance and improve collection. Other important actions include resolving legacy debt, deploying seven million smart meters to reduce losses, and expanding off-grid solutions for underserved communities.
She referenced recent macroeconomic reforms, including the removal of the petrol subsidy and the liberalisation of foreign exchange, and stated her confidence that Nigeria is positioned for extraordinary growth.
Nigeria underperforms in oil sector - Verheijen
“Under President Tinubu’s leadership, Nigeria is championing reforms to unlock its vast economic potential and create jobs,” she stated.
Verheijen further said, “Despite our abundant resources, we have underperformed against our potential. For example, Brazil holds only 30 per cent of Nigeria’s oil reserves but produces 131 per cent more. This is largely due to under-investment.
“Since 2016, Nigeria has managed to attract only 4 per cent of total investments in oil and gas, while less-resourced countries in Africa have enjoyed a larger share.
“When we analysed investment data, we also found that, between 2013, when Nigeria’s last deepwater project reached FID, and now, International Oil Companies (IOCs) operating in Nigeria have committed more than $82bn in deepwater investments in other countries they deemed to be more attractive destinations for their capital.
The presidential aide also disclosed the Tinubu administration's efforts to attract greater investments in the oil and gas sector by offering a range of clear fiscal incentives for non-associated gas and deep offshore oil and gas exploration and production.
“This is the first time that Nigeria is outlining a fiscal framework for deepwater gas since exploration in the basin commenced in 1991,” Verheijen stated.
“He thinks it’s a great job”: Mixed reactions as Power Minister claims over 40% improvement
Meanwhile, TheRadar earlier reported that Chief Adebayo Adelabu of the Ministry of Power announced that over 40% of Nigerians are experiencing significant improvements in electricity supply.
However, his statement met mixed reactions as Consumer Advocates and some members of the public strongly opposed the Ministry’s claim, while some others confirmed the electricity improvement.