Tinubu praises $800 million investment in Ima Gas Project as Nigeria taps into old gas reserves

President Bola Tinubu has praised the $800 million Final Investment Decision (FID) on the Ima Gas Development Project. This project is by AMNI International, an independent oil and gas company, working with TotalEnergies.

In a statement on Wednesday from Bayo Onanuga, the president’s spokesperson, Tinubu said this investment is a big step in his government's plan to develop Nigeria’s rich gas resources. He aims to attract investment, boost industries, create jobs, and grow the economy.

The Ima Gas Project is located offshore in Oil Mining Leases (OMLs) 112 and 117. It was discovered in 1973 but remained untouched for over fifty years.

The presidency says the project is expected to produce around 300 million standard cubic feet (MMscf) of gas daily at its peak.

“Despite its large reserves and potential as feed gas for Nigeria LNG Limited, the resource stayed underground and could not help Nigeria’s economy. The FID, announced on September 23, has changed this,” the statement added.

The Ima Gas Project is the fourth major gas project to reach FID since Tinubu took office. This follows the Iseni, Ubeta, and HI projects.

The presidency mentioned that these FIDs show growing progress in Nigeria’s gas sector. The government is working to turn the country’s gas resources into projects that create jobs, generate income, and provide economic chances.

Tinubu pointed out that for over fifty years, the gas under Ima was a resource with great potential. But potential alone does not create jobs, fund businesses, or improve lives.

“Our job is to create the right conditions to turn Nigeria’s natural resources into valuable investments and job opportunities,” he explained.

He added that the Final Investment Decision on Ima shows what can happen when governments create a reliable and supportive environment for investors.

“We want to unlock more of Nigeria’s gas resources to power industries, increase exports, create jobs, and build lasting prosperity for our people,” the statement said.

Since he became president, Tinubu has focused on reforms to tackle years of underinvestment in Nigeria’s oil and gas sector.

He noted that the Petroleum Industry Act of 2021 set a regulatory framework but many projects still faced financial and commercial hurdles.

In 2024, Tinubu issued several presidential directives led by his Special Adviser on Energy, Olu Verheijen. These directives aimed to improve financial competitiveness, speed up contracting, and lower project costs.

Verheijen said the Ima project reflects the goals of these reforms.

“The story of Ima is really about what our reforms aim to achieve. Nigeria has enough resources. The issue has been making the investment conditions good enough to move those resources into projects that create jobs and support economic growth,” she said.

“A gas discovery made in 1973 only helps when someone invests in it, banks finance it, contractors build it, Nigerians work on it, and the gas is used effectively. That is the change we see today,” she added.

The project also shows the rising involvement of Nigerians in the energy sector.

AMNI International, a Nigerian-owned company, has a majority stake in the project. This indicates the growing role of local companies in major oil and gas developments.

Nigerian banks have arranged 77 percent of the project’s funding. Around 60 percent of the workforce is expected to come from local communities like Bonny, Finima, and Andoni in Rivers State.

For years, Nigeria has had one of Africa’s largest natural gas reserves, but many resources have not been developed.

The Federal Government’s gas strategy is not just about increasing production. It also aims to expand the use of gas to boost LNG exports, earn foreign exchange, support industries, improve power supply, and create opportunities for local businesses and workers.

“Natural resources only have value when they create chances for our people,” Tinubu said.

“Our aim is to make sure Nigeria’s gas fuels Nigerian prosperity.”

The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, also praised Tinubu for the policy changes that he says have improved investor confidence and helped AMNI International and TotalEnergies reach the FID.

Ekpo called the FID a significant achievement for Nigeria’s gas sector and a sign of confidence in the investment potential of the energy industry.

He noted this development shows the progress the Federal Government is making in creating a more competitive and investment-friendly environment for gas resource development.

According to the minister, the Ima Gas Development Project is expected to add around 350 million standard cubic feet per day (MMscfd) to Nigeria’s gas production capacity when it starts in 2028.

He said this project would enhance local gas supply and support the government’s goal of using natural gas for industrial growth and energy security.

“Getting the Final Investment Decision on the Ima Gas Development Project shows how the policy reforms by President Bola Ahmed Tinubu are making a difference.

“The Executive Orders and broader regulatory changes approved by Mr President have built investor confidence and made Nigeria’s gas sector more attractive,” Ekpo said.

“Ima Gas Development Project is not just an investment in gas production; it is an investment in Nigeria’s future. It fits with President Tinubu’s Renewed Hope Agenda and shows our commitment to turning our gas resources into jobs, industries, and wealth for Nigerians,” he added.

The minister also recognized AMNI International and TotalEnergies for their trust in Nigeria’s investment climate and for reaching this milestone.

He described the partnership as an example of how local and international expertise can work together to deliver meaningful projects for Nigeria.

Ekpo said the successful completion of the project would create opportunities for local businesses, boost employment, enhance local participation, and facilitate skills and technology transfer.

He urged the joint venture partners to keep up the momentum from the FID. They should collaborate with government bodies to ensure the project is completed on time and efficiently.

He assured that the Federal Government will continue to support policies that enhance gas production and use, strengthen infrastructure, create jobs, and advance the Decade of Gas initiative and the Renewed Hope Agenda.

“Ima Gas Development Project shows the kind of investment needed to convert Nigeria’s large gas resources into real economic gains while supporting the country’s goals for industrial growth, energy security, and sustainable development,” he added.