Verheijen: Nigeria Needs $38.3bn to Plug Funding Gap in Oil, Gas Sector

Nigeria requires approximately $38.3 billion in additional financing to sustain its current oil and gas production levels and achieve its 2030 output goals, according to Olu Verheijen, the President's Special Adviser on Energy. Verheijen emphasized that bridging this significant funding gap necessitates the creation of a stable, competitive, and investor-friendly environment capable of attracting both domestic and international capital.

Speaking at the 25th Nigeria Oil and Gas (NOG) Energy Week Conference and Exhibition in Abuja, Verheijen highlighted that while Nigeria has made strides in reforming its energy sector, financing remains a critical challenge. She noted that global investment capital is increasingly selective, favoring countries with clear policies, regulatory certainty, and credible institutions. "That capital from Lagos, Johannesburg, London, Houston, Abu Dhabi or Beijing is asking for the same thing: credible rules, bankable projects, competitive costs, predictable regulation, and disciplined execution," she stated, framing it as both a warning and an opportunity.

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For Africa, that question is urgent. And for Nigeria, the scale of the task is equally clear: to sustain the current base and grow toward our 2030 production target, analysis shows a financing gap of about $38.3 billion.

The administration of President Bola Tinubu has undertaken reforms aimed at enhancing Nigeria's investment climate. These include recalibrating fiscal terms, clarifying regulations, streamlining oversight, introducing targeted incentives, and significantly reducing contracting timelines. Verheijen reported that these efforts have led to over $50 billion in upstream projects entering the investment pipeline and secured more than $10 billion in long-delayed Final Investment Decisions within the past three years. Crude oil and condensate production has also seen an increase of about 400,000 barrels per day since 2023, with onshore production reaching its strongest level in two decades. The nation is targeting three million barrels per day and 10 billion standard cubic feet of gas per day by the end of the decade.

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That gap cannot be closed by rhetoric, and it cannot be closed by Nigeria alone. And that capital from Lagos, Johannesburg, London, Houston, Abu Dhabi or Beijing is asking for the same thing: credible rules, bankable projects, competitive costs, predictable regulation, and disciplined execution. That is a warning and an opportunity.