FG promises nationwide 20-hour daily power supply by 2027

FG promises nationwide 20-hour daily power supply by 2027

The Federal Government has set an ambitious goal to provide Nigerians with 20 hours of daily electricity by 2027. However, this plan is contingent upon securing adequate investment in the nation’s oil and gas industry, which, according to officials, is currently underperforming.

Olu Verheijen, the Special Adviser to the President on Energy, made this announcement during her speech at the Energy Week in Cape Town, South Africa. The statement was shared by Abiodun Oladunjoye, Director of Information and Publicity at the State House, on Thursday.

“By 2027, Nigeria aims to ensure 20 hours of electricity daily for consumers in urban areas and industrial hubs,” Verheijen revealed.

Verheijen’s remarks come amidst the persistent challenges faced by Nigeria’s national power grid, which continues to suffer frequent collapses, resulting in widespread blackouts. The most recent collapse occurred on Tuesday, marking the 10th such incident in 2024 alone. The Federal Government has cited outdated infrastructure, lack of proper maintenance, and insufficient investment as primary reasons behind these grid failures.

Despite an installed generation capacity of around 12,500 megawatts, Nigeria often produces far less, leaving many regions without stable power supply.

At the Energy Week, Verheijen also highlighted the efforts of President Bola Tinubu’s administration to reform the power sector and extend electricity access to the 86 million Nigerians currently without reliable power. She outlined plans to improve revenue collection, reduce losses through the deployment of seven million smart meters, and expand off-grid solutions to remote areas.

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Verheijen expressed confidence that Nigeria is poised for economic growth, particularly following macroeconomic reforms such as the removal of the petrol subsidy and foreign exchange liberalization. “Under President Tinubu’s leadership, Nigeria is championing reforms to unlock its vast economic potential and create jobs,” she said, urging global partners to invest in Nigeria’s energy sector.

Verheijen also noted Nigeria’s underperformance in oil and gas production, despite possessing vast reserves. She compared Nigeria’s output to that of Brazil, which holds just 30 percent of Nigeria’s oil reserves but produces 131 percent more oil. “Despite our abundant resources, we have underperformed against our potential. Brazil holds only 30 percent of Nigeria’s oil reserves but produces 131 percent more. This is largely due to under-investment,” she remarked.

Since 2016, Nigeria has attracted only 4 percent of Africa’s total oil and gas investments, while less resource-rich countries in the continent have seen higher levels of investment. Verheijen also pointed out that between 2013, when Nigeria’s last deepwater project reached Final Investment Decision (FID), and now, international oil companies have committed over $82 billion to deepwater projects in other countries.

Acknowledging these challenges, Verheijen highlighted President Tinubu’s efforts to enact reforms aimed at transforming Nigeria’s energy sector and attracting more investment. She pointed to the introduction of fiscal incentives for deep offshore and non-associated gas projects, marking the first time Nigeria has introduced a specific fiscal framework for deepwater gas.

In partnership with the National Security Adviser’s office, Verheijen’s team has worked to streamline security measures for the oil and gas sector, as well as to reduce lengthy project timelines and high operational costs. “Our target is to shorten the contracting timelines from an extensive 38 months to just 135 days, while also working to eliminate the 40 percent cost premium that currently exists within the Nigerian petroleum industry,” she noted.

The government’s reforms are also opening up opportunities in midstream and downstream sectors, including investments in compressed natural gas, liquefied petroleum gas, and electric vehicles. These initiatives align with the broader Presidential Gas for Growth Initiative, which aims to reduce the use of petrol and diesel in heavy transport, decentralized power generation, and cooking.

Verheijen also confirmed that over $1 billion has already been unlocked in investments across Nigeria’s energy value chain, with expectations of more major projects by mid-2025. The government is also facilitating the transfer of onshore and shallow water assets to local companies, while supporting the transition of international oil companies to deep offshore and integrated gas ventures.

“We have unlocked over $1 billion in investments across the value chain, and by mid-2025, we expect to see FID on two more projects, including a multibillion-dollar deepwater exploration project, which will be the first of its kind in Nigeria in over a decade,” Verheijen concluded.

 

FG promises nationwide 20-hour daily power supply by 2027