Reported by: Oahimire Omone Precious | Edited by: Oravbiere Osayomore Promise.
The Ima Gas Project has finally reached a Final Investment Decision, fifty-three years after the resource was first discovered offshore Nigeria. The $800 million FID, announced on September 23, 2026, by Nigerian independent AMNI International in partnership with TotalEnergies, is expected to produce about 300 million standard cubic feet of gas per day at peak. For a country that has spent decades flaring gas and importing what it could refine, the project represents a significant milestone. But for a nation that has heard many such announcements before, the question is whether this one will translate into tangible benefits for ordinary Nigerians.
The Ima resource is located in Oil Mining Leases 112 and 117, offshore Niger Delta. It was discovered in 1973, during the oil boom that reshaped Nigeria's economy. Despite its potential as a feed gas source for Nigeria LNG Limited, the resource remained undeveloped for more than five decades. The reasons are familiar: regulatory uncertainty, fiscal policies that made projects unviable, and a decades-long failure to create the commercial conditions necessary for investment. The Petroleum Industry Act of 2021 laid the foundation for reform, but it took the presidential directives issued by President Bola Tinubu in 2024 to create what the administration describes as a competitive, predictable and enabling environment.
Those directives, developed by a team led by the Special Adviser to the President on Energy, Olu Arowolo Verheijen, sought to improve fiscal competitiveness, shorten contracting timelines and reduce costs. The result, according to the government, is the fourth major gas project to reach FID since Tinubu assumed office, following the Iseni, Ubeta and HI projects. Verheijen framed the Ima FID as proof that the reforms were working. "The story of Ima is ultimately the story of what our reforms are designed to achieve," she said. "Nigeria has never lacked resources. The challenge has been creating the commercial and investment conditions required to move those resources from beneath the ground into projects that employ Nigerians, create opportunities for Nigerian businesses, generate revenues and support economic growth."
The project has notable features that distinguish it from previous gas announcements. AMNI International, a Nigerian-owned exploration and production company, holds a majority interest in the asset, a departure from the traditional dominance of international oil companies in Nigeria's upstream sector. Nigerian financial institutions arranged 77 per cent of the project's financing, a level of local participation that underscores the growing capacity of the domestic capital market. Approximately 60 per cent of the project workforce is expected to come from host communities in Bonny, Finima and Andoni in Rivers State, which, if fulfilled, would represent a meaningful commitment to local content and community engagement.
President Tinubu, in a statement issued by his Special Adviser on Information and Strategy, Bayo Onanuga, described the FID as evidence that his administration was converting the country's natural resources into productive investments. "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," Tinubu said. "The Final Investment Decision on Ima demonstrates what is possible when we provide investors with a competitive, predictable and enabling environment."
The administration's broader gas strategy focuses not simply on producing more gas, but on putting it to work. The government says the Ima gas will support LNG exports and foreign exchange earnings, provide feedstock for industry, enable fertiliser and petrochemical production, and support a more reliable power supply. If these ambitions materialise, they could address some of Nigeria's most pressing economic challenges: the shortage of foreign exchange, the decline of manufacturing, and the unreliable electricity supply that has crippled businesses and households for decades.
However, the gap between FID and actual production remains a critical concern. Final Investment Decisions are commitments to invest, not guarantees of delivery. Nigeria has a long history of projects that reached FID and then stalled, faced delays, or were abandoned entirely. The Ima project is not expected to begin production for several years, and the timeline from FID to first gas will test both the government's reform agenda and the capacity of the project's promoters to execute. The $800 million investment is significant, but it is a fraction of what Nigeria needs to fully develop its gas resources. The country has one of Africa's largest gas resource bases, yet significant volumes remain undeveloped or flared. According to the World Bank, Nigeria flared approximately 7.4 billion cubic metres of gas in 2023, the seventh-highest volume globally. The Ima project will help reduce that waste, but it is not a complete solution.
The administration has also faced criticism for the pace of its reforms. The presidential directives issued in 2024 were designed to streamline processes and attract investment, but the impact has been gradual. The Ima FID, while welcome, comes after years of delays and against the backdrop of a broader economic crisis that has seen petrol prices soar above N1,300 per litre, inflation erode household purchasing power, and millions of Nigerians slip into poverty. The government argues that gas development will create jobs, generate revenue and improve energy security, but the benefits will not be immediate. For a population that has grown weary of announcements and promises, the real test will be whether the Ima project delivers gas, jobs and revenue on schedule, and whether the reforms that enabled it can be replicated across the sector.
The Ima FID is a genuine achievement. It is the product of sustained engagement between the government, investors and financiers, and it signals that Nigeria's gas sector is open for business. But it is also a reminder of how much time has been lost. A resource discovered in 1973 should have been developed decades ago. The fact that it took fifty-three years and a series of presidential directives to get to this point speaks to the structural failures that have held Nigeria back. The question now is whether the country can move beyond celebrating FIDs and focus on delivering the projects that will power its future. For the people of Bonny, Finima and Andoni, and for millions of Nigerians waiting for the benefits of gas development, the answer lies not in the press release but in the pipeline.
📩 Stone Reporters News | 🌍 stonereportersnews.com
✉️ info@stonereportersnews.com | 📘 Facebook: Stone Reporters News | 🐦 X (Twitter): @StoneReportNew | 📸 Instagram: @stonereportersnews
Add comment
Comments