Tinubu Elated Over $800m Ima Gas FID As Nigeria Unlocks Five-Decade-Old Gas Resource

President Bola Tinubu expressed delight over the $800 million Final Investment Decision (FID) for the Ima Gas Project, highlighting a significant advancement in his government's mission to unlock Nigeria's extensive gas resources. Developed by Nigerian independent company AMNI International in collaboration with TotalEnergies, the Ima Gas Project is projected to generate approximately 300 million standard cubic feet of gas per day at its highest output.

Situated offshore in OMLs 112 and 117, the Ima gas deposit was discovered in 1973 but remained undisturbed for over five decades. The FID, announced on September 23, has transformed the resource's potential into tangible progress.

This achievement marks the fourth major gas project to reach the FID since President Tinubu took office, following the Iseni, Ubeta, and HI FIDs. These successful FIDs underscore the growing investment interest in Nigeria's gas sector and the administration's efforts to transform the country's vast gas reserves into productive ventures that foster job creation, revenues, and economic opportunities.

In a statement, presidential spokesperson Bayo Onanuga emphasized that the Ima gas project exemplifies the expanding momentum in investments within Nigeria's gas industry under the Tinubu administration.

President Tinubu articulated that for five decades, the gas beneath the Ima site remained a resource with immense potential, but without conversion into productive investments, it could not improve the lives of the populace. His administration's commitment has been to create an environment that transforms Nigeria's natural resources into profitable ventures and opportunities for economic growth.

The FID on Ima Gas demonstrates the positive impact of providing investors with a favorable and stable setting to engage in productive ventures.

Since his inauguration on May 29, 2023, President Tinubu has been focused on implementing reforms to rectify years of inadequate investment in Nigeria's oil and gas sector. Despite the Petroleum Industry Act of 2021 laying a crucial foundation, several undeveloped projects lacked the required fiscal and commercial conditions to become viable.

In 2024, Tinubu issued a series of presidential directives, spearheaded by the Special Adviser to the President on Energy, to enhance fiscal competitiveness, expedite contracting procedures, and minimize costs.

The Ima Gas Project also showcases the increasing involvement of indigenous companies in the energy sector. Nigerian-owned company AMNI International, which holds a majority stake in the project, exemplifies the expanding capacity of local entities to lead significant developments in Nigeria's upstream sector. Financial institutions in Nigeria have arranged 77 percent of the project's financing, with around 60 percent of the project's workforce anticipated to originate from host communities, including Bonny, Finima, and Andoni in Rivers State.

Nigeria has one of Africa's largest gas resource bases, yet for many years, significant volumes of this resource remained undeveloped. The Tinubu administration's gas strategy aims not only to generate more gas but also to utilize this gas effectively. This involves supporting liquefied natural gas (LNG) exports and foreign exchange earnings, supplying feedstock for industries, enabling fertilizer and petrochemical production, ensuring a more dependable power supply, and generating fresh prospects for Nigerian businesses and workers.

Ms Olu Arowolo Verheijen, Special Adviser to the President on Energy, stated that the Ima Gas Project is representative of the objectives of the Tinubu administration's reforms. She noted that while Nigeria has never lacked resources, the challenge has been creating the commercial and investment conditions needed to convert those resources into projects that uplift Nigerians, create opportunities for businesses, generate revenues, and stimulate economic growth. The story of Ima Gas is, ultimately, a testament to the impact of these reforms.