Nigeria’s gas industry has received a major investment boost following the final investment decision on the $800 million Ima gas project, with key government agencies describing the development as evidence that ongoing reforms are beginning to unlock new investment in the sector.
The project, being developed by TotalEnergies EP Nigeria Limited and AMNI International Petroleum Development Company Limited, is located in Oil Mining Leases (OMLs) 112 and 117, offshore Rivers State.
The partners announced the FID on September 23, with first gas expected by the end of 2028.
The Nigerian National Petroleum Company (NNPC) Limited said the investment represented a significant vote of confidence in the country's upstream gas sector and the policy measures introduced to create a more predictable and competitive investment environment.
NNPC Group Chief Executive Officer, Bayo Ojulari, said the project demonstrated the growing attractiveness of Nigeria's gas resources to investors.
“The FID is a decisive vote of confidence in Nigeria’s gas sector and in the bold reforms that have created competitive terms and a predictable investment environment,” he said in a statement issued by the company on Friday.
300mscf Daily Production Target
According to NNPC, the Ima gas development is expected to produce approximately 300 million standard cubic feet (scf) of gas per day at peak production.
The gas will provide feedstock to Nigeria LNG Limited (NLNG) for its Train 7 expansion project at Bonny Island, Rivers State.
The expansion is expected to increase NLNG's production capacity from 22 million tonnes per annum (Mtpa) to 30 Mtpa, potentially strengthening Nigeria's position in the global liquefied natural gas market.
NNPC said the Ima FID was facilitated by presidential directives issued in 2024, which introduced fiscal incentives for non-associated gas projects, streamlined contracting processes and helped reduce development costs.
The company described Ima as the fourth major gas project to reach FID under President Bola Tinubu, following Iseni, Ubeta and HI.
The development also brings together an indigenous operator, an international energy company and Nigerian financial institutions, a combination NNPC said could provide a template for future oil and gas developments in the country.
NNPC said the collaboration between AMNI, TotalEnergies and domestic financial institutions demonstrated the potential of partnerships that combine local expertise, international investment and Nigerian capital.
NUPRC: Project Will Unplug Obstacles
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) also welcomed the FID, saying the project demonstrated what could be achieved when government policy, regulation and private-sector investment work towards a common objective.
NUPRC Commission Chief Executive Officer, Oritsemeyiwa Eyesan, attributed the milestone in part to the presidential directives that sought to improve the investment environment.
“Today’s success is attributable to His Excellency, the President of the Federal Republic of Nigeria… Years ago we could not have conceived that today we will be sitting here to celebrate a project if he hadn’t given the executive orders,” Eyesan said.
She pledged that the upstream regulator would continue working to remove obstacles confronting investors and facilitate the development of Nigeria's hydrocarbon resources.
“As the chief regulator in the industry, we will enable business, we will unplug obstacles. The President has set the path for us, and we are determined to follow through,” the NUPRC boss said.
‘Policy, Regulation Must Align’
The Special Adviser to the President on Energy, Olu Verheijen, also highlighted the importance of coordination among government institutions in attracting investment into the country's energy sector.
In a post on X, Verheijen said the Ima development illustrated what could be achieved when policy, regulation and implementation were aligned.
“Yesterday’s Ima Gas FID was another example of what is possible when policy, regulation and implementation are aligned around a common goal: unlocking investment and translating Nigeria’s energy resources into jobs, growth and prosperity for our people,” she said.
The Ima project is expected to contribute to Nigeria's broader efforts to expand gas production and utilisation, particularly as the country seeks to use its substantial gas resources to support industrial development, electricity generation and export earnings.
For the government and regulators, the investment decision also represents a test of whether recent reforms can translate into sustained project execution and new capital across Nigeria's upstream sector.
NNPC said it would continue working with government institutions, regulators and industry partners to sustain investment, accelerate gas development and deploy the country's gas resources towards industrialisation, job creation and economic growth.