Nigeria is set to increase gas production by about 300 million standard cubic feet per day following the Final Investment Decision on the $800m Ima Gas Project, which remained undeveloped for more than five decades after its discovery.
President Bola Tinubu welcomed the investment decision announced on Wednesday, describing it as a major step towards developing Nigeria’s gas resources for industrialisation, job creation and economic growth.
President Tinubu said: “For more than fifty years, the gas beneath Ima remained a resource with enormous potential, but potential alone does not create jobs, finance businesses or improve the lives of our people. Our responsibility has been to create the conditions that turn Nigeria’s natural resources into productive investments and economic opportunities.
“The Final Investment Decision on Ima demonstrates what is possible when we provide investors with a competitive, predictable and enabling environment. We are determined to unlock more of Nigeria’s gas resources to power our industries, expand our exports, create jobs and build lasting prosperity for our people.”
The project, developed by Nigerian independent exploration and production company AMNI International in partnership with TotalEnergies, is located offshore in Oil Mining Leases 112 and 117.
The Ima gas resource was discovered in 1973 but remained undeveloped for more than 50 years. Its development is expected to provide gas that could serve as feedstock for Nigeria LNG Limited, while also expanding domestic gas supply.
The project is the fourth major gas development to reach FID since Tinubu assumed office, following the Iseni, Ubeta and HI projects.
The Federal Government said the series of investment decisions reflected increased activity in the gas sector and efforts to convert previously undeveloped resources into productive assets capable of generating jobs, revenues and business opportunities.
Tinubu's administration has introduced reforms aimed at addressing longstanding fiscal, commercial and contracting challenges that contributed to underinvestment in the oil and gas industry.
Although the Petroleum Industry Act 2021 provided a framework for investment in the sector, several projects remained undeveloped because of commercial and fiscal constraints.
In 2024, the President issued a series of Presidential Directives developed by a team led by the Special Adviser to the President on Energy, Olu Verheijen. The directives were designed to improve fiscal competitiveness, reduce project costs and shorten contracting timelines.
The Special Adviser to the President on Information and Strategy, Bayo Onanuga, in a statement on Wednesday, said the Ima project demonstrated the impact of the reforms on long-delayed gas developments.
“Despite its significant reserves and potential as a source of feedgas for Nigeria LNG Limited, the resource remained underground and unable to contribute meaningfully to Nigeria’s economy. The FID, announced on September 23, has changed this”, the statement read in part.
The project also highlights the growing role of Nigerian companies in the upstream sector, with AMNI International, a Nigerian-owned exploration and production company, holding a majority interest in the asset.
Nigerian financial institutions arranged 77 per cent of the project's financing, while about 60 per cent of its workforce is expected to be drawn from host communities, including Bonny, Finima and Andoni in Rivers State.
The Federal Government said Nigeria has one of Africa's largest gas resource bases but significant volumes have remained undeveloped over the years.
The administration's gas strategy is aimed not only at increasing production but also at expanding the use of gas for LNG exports and foreign exchange earnings, industrial feedstock, fertiliser and petrochemical production, improved power supply and new opportunities for Nigerian businesses and workers.
The Ima project is therefore expected to contribute to the government's broader effort to turn stranded or undeveloped gas resources into commercial projects and increase the contribution of the sector to the economy.
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