The Federal Government has set an ambitious target to provide Nigerians with 20 hours of electricity daily by 2027, contingent upon major investments in the oil and gas sector, which currently falls short of expectations.
Olu Verheijen, Special Adviser to the President on Energy, made this revelation at the African Energy Week in Cape Town, South Africa, where she outlined the government’s plans for the energy sector.
She emphasized that achieving consistent electricity supply across urban and industrial areas will require robust investments in infrastructure and energy resources.
“By 2027, Nigeria aims to ensure 20 hours of electricity daily for consumers in urban areas and industrial hubs,” Verheijen said, while stressing the importance of resolving the country’s power sector challenges, which include aging infrastructure and inadequate maintenance.
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Verheijen’s remarks come at a time when Nigeria is grappling with frequent grid collapses, which have caused widespread blackouts across the nation.
The national power grid collapsed once again on Tuesday, marking the 10th incident since January 2024. The government attributes these grid failures to outdated infrastructure, poor maintenance practices, and chronic underinvestment in the power sector.
With an installed generation capacity of about 12,500 megawatts, Nigeria often struggles to produce more than a fraction of this potential, leaving millions without stable electricity.
The Tinubu administration, according to Verheijen, is working to revitalize the power sector, focusing on enhancing revenue assurance and collection, tackling legacy debts, and deploying seven million smart meters to reduce energy losses.
Furthermore, there are plans to expand off-grid solutions for underserved rural communities.
In addition to efforts within the power sector, Verheijen highlighted recent macroeconomic reforms such as the removal of the petrol subsidy and foreign exchange liberalization, noting that these changes are designed to unlock Nigeria’s economic potential and attract investment.
Despite having one of the world’s largest oil reserves, Nigeria has long underperformed in oil and gas production. Verheijen pointed out that countries like Brazil, with only 30% of Nigeria’s oil reserves, produce significantly more oil, largely due to better investment practices.
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“Since 2016, Nigeria has attracted only 4% of total investments in Africa’s oil and gas sector, while other, less resource-rich countries have garnered a larger share,” Verheijen said.
To address this, the government is rolling out a series of fiscal incentives aimed at attracting investment into deep offshore and non-associated gas projects.
Verheijen also revealed initiatives aimed at reducing project timelines from 38 months to just 135 days and eliminating the 40% cost premium associated with operating in Nigeria’s oil and gas industry.
Verheijen added by outlining the government’s vision for Nigeria’s future energy landscape, with over $1 billion in new investments unlocked across the value chain and plans for additional projects expected to reach Final Investment Decision (FID) by mid-2025.
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