By Kunle Odusola-Stevenson
Verheijen outlines a new policy framework for unlocking reserves, accelerating project execution and positioning oil and gas as engines of national economic productivity.
LAGOS, NIGERIA | NOVEMBER 10, 2026
Nigeria is repositioning its oil and gas industry around a more consequential economic objective: converting its vast hydrocarbon resources into productive assets, sustained output, stronger public revenues and a more diversified national economy.
This was the central policy message delivered by Olu Arowolo Verheijen, Special Adviser to President Bola Ahmed Tinubu on Oil and Gas, at the 44th Annual International Conference and Exhibition of the Nigerian Association of Petroleum Explorationists (NAPE 2026), held on November 9 at Eko Hotels and Suites, Lagos.
In her keynote address, titled “From Energy Recovery to National Renewal,” Verheijen articulated the administration’s evolving upstream strategy, signalling a decisive shift from celebrating resource discoveries to addressing the fiscal, regulatory and institutional constraints that have historically delayed their development.
Her intervention offered a compelling perspective on the relationship between energy policy, industrial competitiveness and national economic transformation. For global energy executives and policymakers, the message was clear: Nigeria’s next phase of growth will depend not simply on what lies beneath its soil, but on its ability to translate geological potential into developed reserves, reliable production and enduring economic value.
FROM RESOURCE DISCOVERY TO COMMERCIAL EXECUTION
Perhaps the most striking illustration of Nigeria’s historical upstream challenges is the IMA gas field.
Discovered in 1973, the project reached Final Investment Decision (FID) in September 2026, more than five decades after its discovery.
For Verheijen, IMA represents more than an individual gas development. It demonstrates how the conditions surrounding a project, rather than geological potential alone, determine whether natural resources translate into economic value.
She identified uncertain institutional responsibilities, prolonged contracting processes, uncompetitive project economics and unreliable routes to paying customers as historical constraints that weakened Nigeria’s petroleum sector.
Under President Tinubu’s leadership, the administration has pursued a coordinated reform approach involving fiscal design, commercial negotiations and institutional collaboration among government ministries, regulators, NNPC, operators and industry participants.
The underlying philosophy is deliberate: fiscal incentives must reward production, protect existing government revenues, remain commercially workable and reflect the distinctive characteristics of individual resources.
In the gas sector, this recognises an important reality: incentives alone cannot guarantee development. Market access, sustainable pricing and dependable customer arrangements must advance alongside fiscal and regulatory reforms.
The opening of opportunities for third-party gas supply to Nigeria LNG (NLNG) illustrates this integrated approach.
FID MOMENTUM: TURNING POLICY INTO PRODUCTION
Nigeria’s evolving upstream trajectory is reflected in three significant project decisions.
Ubeta and Bonga North achieved FIDs in 2024, while IMA joined them in September 2026.
These milestones represent more than industry announcements. They signal committed resources, projects entering execution and the foundations for future production.
Verheijen’s emphasis on translating policy reform into actual project decisions is particularly significant. It reflects an understanding that the credibility of a country’s petroleum framework is ultimately established by its ability to move developments from conception to execution.
The immediate priority is to sustain this momentum, ensure timely delivery, improve output from existing assets and accelerate the replenishment of national reserves.
For Nigeria, the ability to maintain competitiveness across commodity price cycles, rather than depend on temporary disruptions in global supply, will be critical to its long-term position among the world’s petroleum-producing jurisdictions.
EXPLORATION, INDIGENOUS CAPABILITY AND TECHNOLOGY: THE THREE PILLARS OF RESERVES GROWTH
Addressing the conference theme, “Unlocking More Barrels: Driving Reserves Growth through Exploration, Local Capabilities, and Adaptive Technology,” Verheijen identified three interconnected priorities for the industry’s next growth phase.
First, exploration and reserves replenishment.
Nigeria cannot sustain production growth without continuously discovering, appraising and developing new resources. Credible exploration programmes, reliable geological data and development plans that integrate infrastructure and market considerations are essential.
Improved reservoir understanding, infill drilling and enhanced recovery offer important near-term opportunities, but must complement rather than substitute for new exploration and development.
Second, indigenous capability and technical excellence.
The growing participation of Nigerian independent producers presents an opportunity to accelerate onshore and shallow-water development, while international operators continue to contribute expertise and resources to deepwater and integrated gas projects.
However, Nigerian ownership must translate into demonstrable technical excellence, sound corporate governance, stronger balance sheets and responsible asset management.
Local content must transcend participation percentages. Its enduring value lies in producing globally competitive Nigerian engineers, fabrication companies, technology providers and service businesses capable of competing beyond the country’s borders.
Third, adaptive technology and operational efficiency.
Advanced seismic interpretation, reservoir modelling, digital monitoring, methane measurement and artificial intelligence offer significant opportunities to improve exploration outcomes and operational performance.
The commercial test of technology adoption must be measurable: reduced uncertainty, lower operating costs, improved recovery, reduced downtime and safer operations.
WHY UPSTREAM RECOVERY MATTERS TO THE NATIONAL ECONOMY
One of the most consequential dimensions of Verheijen’s address was its connection between upstream performance and Nigeria’s broader economic transformation.
Her argument was clear: oil, gas and power must be understood as interconnected components of a coherent national energy and industrial strategy.
Oil production remains central to export earnings, foreign exchange generation and public finances. Gas, meanwhile, offers a far-reaching industrial opportunity through electricity generation, manufacturing, agricultural processing and export-oriented industries.
Yet the bankability of gas developments depends on the strength of the market at the other end of the pipeline.
Resolving legacy debts across the electricity value chain, improving metering, strengthening revenue collection and ensuring reliable payments to suppliers are therefore not merely power-sector interventions. They are fundamental requirements for sustainable gas development and national industrialisation.
Equally important is protecting vulnerable consumers through targeted support while establishing transparent commercial arrangements that encourage supply and improve service delivery.
This is a particularly important policy insight: Nigeria’s ability to monetise its gas resources will depend as much on the reliability of its domestic energy market as on its capacity to develop additional reserves.
POSITIONING NIGERIA IN THE GLOBAL ENERGY LANDSCAPE
Verheijen’s intervention also situated Nigeria’s energy recovery within the intensifying global competition for petroleum-sector capital and expertise.
Emerging developments in Guyana and across Africa demonstrate that producing jurisdictions must continually strengthen their value propositions to attract long-term industry participation.
Nigeria must therefore distinguish itself through fiscal credibility, regulatory predictability, quality infrastructure, efficient project execution and reliable commercial counterparties.
The administration’s ambition is to establish an environment capable of sustaining development even when international oil prices weaken or additional global supply enters the market.
For international oil companies, sovereign funds, development finance institutions and energy infrastructure funds, this emphasis on long-term commercial competitiveness is particularly relevant.
FROM ENERGY RECOVERY TO NATIONAL RENEWAL
Ultimately, the significance of the Special Adviser’s address lies in its insistence that energy-sector reforms must deliver measurable value beyond the petroleum industry.
As Verheijen emphasised, Nigeria must manufacture more of what it consumes, process more of what it produces and supply more of what neighbouring economies require.
This demands a stronger relationship between hydrocarbon production, industrial capacity, reliable electricity, employment creation, technology transfer and public revenue management.
The next phase of energy development must therefore be assessed not only by barrels produced, cubic feet of gas delivered or projects completed, but also by the economic opportunities generated around them.
The challenge now is institutional continuity, disciplined execution and sustained collaboration between government and industry.
The four performance tests advanced by the Special Adviser — reserves, revenues, reliability and responsibility — remain central to measuring progress.
Nigeria possesses significant geological potential and an increasingly defined policy direction. Its competitive advantage, however, will ultimately depend on its ability to translate both into projects delivered, production sustained and economic value distributed across the wider economy.
The message from NAPE 2026 is clear: Nigeria is moving beyond the promise of its natural resources towards a more commercially disciplined, productive and industrially focused energy economy.
The next chapter of Nigeria’s energy story will not be written by discoveries alone. It will be determined by the quality of policy execution, the strength of its institutions and the value its resources create for Nigerians.
*Kunle Odusola-Stevenson is a
Public Relations and Energy Communication Strategist
