Nigeria and the United States have launched major energy reforms since June 2023, focusing on enhancing energy security, attracting investment, and deepening international cooperation.
The reforms were prominently featured during the inaugural US-Nigeria Strategic Energy Dialogue, which took place on September 11 and 12, 2024, in Washington, DC.
Olu Verheijen, Special Adviser to the President on Energy, highlighted the importance of the dialogue in addressing Nigeria’s energy access challenges.
She noted that nearly 100 million Nigerians still lack reliable power and emphasized the need for collaborative solutions to close this gap.
Verheijen praised the longstanding partnership between Nigeria and the US, stressing that the dialogue aims to align the efforts of both nations to advance shared energy and climate goals.
She stated that under President Bola Ahmed Tinubu’s administration, significant reforms have been introduced to improve the gas-to-power value chain.
According to her, the reforms include initiatives to enhance cash flows in electricity distribution through smart metering, address outstanding debts to investors, and reduce carbon emissions from gas production.
In addition, five new executive orders have been issued to offer fiscal incentives and expedite the development of gas infrastructure, potentially unlocking up to $2.5 billion in new investments.
She stated that the reforms have already begun to show results, with the recent announcement of a Final Investment Decision (FID) on a $550 million upstream gas project.
”This project is set to deliver 350 million standard cubic feet of gas per day upon completion,” she said.
Verheijen expressed optimism about the prospects for Nigeria’s energy sector, particularly with the focus on gas as a transition fuel.
She highlighted that gas provides a cost-effective alternative to renewables while offering significant immediate reductions in emissions.
The dialogue also saw the launch of the Clean Energy Alliance of Nigeria (CLEAN) by the US State Department. The new initiative aims to mobilize stakeholders and promote investment in clean energy within Nigeria.
The Nigerian delegation to the dialogue was led by the Minister of State for Petroleum Resources, Ekperikpe Ekpo, and included officials from the Ministry of Power, the Nigerian Upstream Petroleum Regulatory Commission, the Nigerian Midstream and Downstream Petroleum Regulatory Authority, the Nigerian Content Development and Monitoring Board, and NNPC Limited.
The US delegation comprised representatives from the Bureau of African Affairs, USAID, the U.S. Department of Energy, the USTDA, and the Export-Import Bank.
The dialogue marks a significant step in strengthening energy collaboration between Nigeria and the United States, aiming to advance mutual energy and climate objectives while supporting Nigeria’s ambitious reform agenda.
