Tinubu Welcomes $800m Investment Decision on Long-Delayed Ima Gas Project

President Bola Tinubu has welcomed the $800 million Final Investment Decision (FID) reached on the Ima Gas Project, describing it as an important step towards developing Nigeria’s gas resources and using them to drive industrialisation, job creation and economic growth.

The President’s Special Adviser on Information and Strategy, Bayo Onanuga, disclosed this in a statement issued on Wednesday.

According to the statement, the Ima Gas Project is being developed by Nigerian independent exploration and production company, AMNI International, in partnership with TotalEnergies.

The project is expected to produce approximately 300 million standard cubic feet of gas per day at peak production.

The Ima gas resource, located offshore in Oil Mining Leases 112 and 117, was discovered in 1973 but remained undeveloped for more than 50 years.

The FID announced on Wednesday is expected to pave the way for the development of the long-delayed resource, which could also provide feed gas for Nigeria LNG Limited.

Tinubu said the development demonstrated the importance of creating a predictable, competitive and investor-friendly environment for businesses operating in Nigeria.

He said the gas resource had remained largely untapped for decades despite its significant potential, stressing that natural resources only become economically valuable when they are developed and converted into productive investments.

“For more than fifty years, the gas beneath Ima remained a resource with enormous potential, but potential alone does not create jobs, finance businesses or improve the lives of our people,” the President said.

“Our responsibility has been to create the conditions that turn Nigeria’s natural resources into productive investments and economic opportunities.”

Tinubu further stated that the FID on the Ima project showed what could be achieved when investors are provided with a stable and competitive business environment.

He said his administration would continue working to unlock more of Nigeria’s gas resources to support industries, increase exports, create employment and promote long-term economic prosperity.

The President noted that Nigeria possesses one of Africa’s largest natural gas reserves, although substantial volumes have remained undeveloped for several years.

He explained that the Federal Government’s gas strategy was focused not only on increasing production but also on ensuring that the resource is put to productive use.

According to him, the strategy includes supporting LNG exports and foreign exchange earnings, supplying feedstock to industries, expanding fertiliser and petrochemical production, improving electricity generation and creating opportunities for Nigerian businesses and workers.

“Natural resources have value only when they are converted into opportunities for our people,” Tinubu said.

“Our goal is to ensure that Nigeria’s gas powers Nigerian prosperity.”

The Ima Gas Project is the fourth major gas project to reach Final Investment Decision since Tinubu assumed office, following the Iseni, Ubeta and HI projects.

The projects form part of the Federal Government’s broader efforts to attract fresh investment into the gas sector and transform Nigeria’s vast gas resources into productive assets capable of generating employment, government revenue and wider economic opportunities.

Tinubu’s administration has introduced several reforms aimed at addressing longstanding challenges, including underinvestment and delays in the oil and gas industry.

Although the Petroleum Industry Act of 2021 established a framework intended to encourage investment, a number of projects remained stalled because of fiscal, commercial and contractual challenges.

In 2024, the President issued a series of Presidential Directives developed by a team led by his Special Adviser on Energy, Olu Verheijen.

The measures were designed to improve fiscal competitiveness, reduce project costs and shorten contracting timelines in the sector.

Verheijen said the development of the Ima project demonstrated the intended impact of the reforms.

She explained that Nigeria had never lacked natural resources, but that the major challenge had been creating the commercial and investment conditions necessary to transform those resources into functioning projects.

She said the development of the Ima gas resource would require significant investment, financing from banks, contractors, Nigerian workers and productive utilisation of the gas.

“The story of Ima is ultimately the story of what our reforms are designed to achieve,” Verheijen said.

She added that the project demonstrated how a gas discovery made more than five decades ago could eventually be developed into an asset capable of creating jobs, supporting Nigerian businesses, generating revenue and contributing to economic growth.

The project also highlights the increasing participation of Nigerian-owned companies in the country’s energy industry, with AMNI International holding a majority interest in the asset.

Nigerian financial institutions have reportedly arranged 77 per cent of the project’s financing, while approximately 60 per cent of the workforce is expected to be sourced from host communities, including Bonny, Finima and Andoni in Rivers State.

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