Tinubu Celebrates $800m Investment Kickstarting 50-Year-Old Ima Gas Project — full story

President Bola Tinubu has expressed his delight at the Final Investment Decision (FID) for the Ima Gas Project, valued at $800 million. He described this development as a crucial step towards harnessing Nigeria's vast gas reserves for industrial growth, creating employment opportunities, and boosting the nation's economy.

This announcement was conveyed on Wednesday through a statement released by Bayo Onanuga, the Special Adviser to the President on Information and Strategy. The statement highlighted that the project, a collaborative effort between the indigenous exploration and production firm AMNI International and TotalEnergies, is projected to achieve a peak production of approximately 300 million standard cubic feet of gas daily.

The Ima gas field, situated offshore within Oil Mining Leases (OMLs) 112 and 117, was initially discovered in 1973 but remained undeveloped for over five decades. The recently declared FID is poised to facilitate the development of this long-dormant resource, which holds the potential to supply crucial feedgas to Nigeria LNG Limited.

According to the presidential statement, Tinubu remarked that this investment underscores the positive outcomes of cultivating a predictable and competitive climate for investors. He stated, “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. Our responsibility has been to create the conditions that turn Nigeria’s natural resources into productive investments and economic opportunities.”

President Tinubu further added, “The Final Investment Decision on Ima demonstrates what is possible when we provide investors with a competitive, predictable and enabling environment. We are determined to unlock more of Nigeria’s gas resources to power our industries, expand our exports, create jobs and build lasting prosperity for our people.” He noted that despite Nigeria possessing one of Africa’s largest gas bases for decades, substantial volumes have remained untapped.

He emphasized that his administration's gas strategy is not solely focused on increasing production but also on ensuring the resource is utilized productively. This includes supporting LNG exports to generate foreign exchange, providing feedstock for various industries, enabling the production of fertilizers and petrochemicals, enhancing power supply, and generating prospects for Nigerian enterprises and workers. The President concluded, “Natural resources have value only when they are converted into opportunities for our people. Our goal is to ensure that Nigeria’s gas powers Nigerian prosperity.”

The Ima Gas Project marks the fourth significant gas project to reach FID since President Tinubu assumed office, following the Iseni, Ubeta, and HI projects. These initiatives align with the Federal Government's drive to attract investments into the gas sector, transforming Nigeria’s gas assets into productive ventures that create jobs, revenue, and economic growth.

Tinubu’s government has implemented reforms to address years of underinvestment in the oil and gas sector. While the Petroleum Industry Act (PIA) 2021 laid down a framework for investment, several projects were stalled due to fiscal and commercial hurdles. In 2024, the President issued a series of Presidential Directives, developed by a team led by his Special Adviser on Energy, Olu Verheijen, aimed at boosting fiscal competitiveness, reducing costs, and shortening contracting timelines.

Verheijen commented that the development of the Ima project perfectly embodies the objectives of these reforms. She asserted, “The story of Ima is ultimately the story of what our reforms are designed to achieve. Nigeria has never lacked resources. The challenge has been creating the commercial and investment conditions required to move those resources from beneath the ground into projects that employ Nigerians, create opportunities for Nigerian businesses, generate revenues and support economic growth.” She elaborated, “A gas discovery made in 1973 can only contribute to prosperity when somebody invests the capital to develop it, banks finance it, contractors build it, Nigerians work on it, and the gas is ultimately put to productive use. That is the transition we are seeing today.”

This project also underscores the increasing involvement of Nigerian companies in the energy value chain, with AMNI International, a Nigerian-owned firm, holding a majority stake in the asset. Nigerian financial institutions have provided 77 percent of the project’s funding, and approximately 60 percent of the project's workforce is expected to be sourced from host communities, including Bonny, Finima, and Andoni in Rivers State.