Energy
At GOCOP Confab: Liyel Imoke says alleged expenditure of a phantom $16b delayed Nigeria’s power sector reforms
Imoke, who was also Chairman of the Power Sector Technical Board under the Obasanjo administration, stated this as a matter of fact in his keynote at the 8th Annual Conference of the Guild of Corporate Online Publishers (GOCOP), themed: “Nigeria: Tackling insecurity, power deficit, and transitioning to digital economy.”
Admitting that the National Electric Power Authority (NEPA), as it then was, was a monopoly, he said that electricity distribution was also a monopoly even as the execution of so many programmes faced various challenges.
He referred to the undue delay in implementation of the power sector reforms, which resulted from the probe of the claim of a phantom expenditure of $16 billion on the sector under the administration.
According to him: “The power sector probe took about two years. The delay led to huge cost overruns; doubling costs of various contracts awarded during my tenure. Several of these projects were delayed in completion. As we speak, we still have several IPP projects that are ongoing.”
He said that at the end of the probe, they found out that there was no missing $16b, but lamented that the alleged expenditure of the phantom $16b had been used as a political tool to criticize “those of us in government.”
Imoke fingered inadequate information as the trigger for the allegation, pointing out that, for instance, on his watch as Minister of Power, the actual spending was between $2b and $3b, much of which went to the original electric manufacturer.
The former power minister said that insecurity, power deficit, and the slowness in Nigeria’s transition to a full digital economy were challenges impeding national growth and development.
According to him: “These are challenges that impede our growth as a nation. They make us less globally competitive. If you look at electricity insecurity and digital economy and if we tackle these, we will be on our way to economic growth.”
He said to unlock Nigeria’s potential, the administration must tackle insecurity, noting that there had been insurgency and the emergence of Boko Haram, which split into ISWAP.
“We have experienced banditry, kidnapping, armed killings, mass kidnapping, and illegal mining. These days, we can’t go to a gathering of this magnitude without seeing someone who had been kidnapped before. This is one of our new realities,” he stated.
He implicated ethnic tension as a contributory cause of communal violence, adding that grievances in the Niger Delta caused a lot of insecurity in the region in the 2000s.
Imoke spoke about organized private crimes in the Gulf of Guinea, which created insecurity in the area and the separatist marginalization in the southeast region, leading to agitation
He stated that, for instance, between 2009 and 2020, insurgency by Boko Haram alone resulted in over 40,000 deaths.
Imoke listed poverty, high unemployment rate, which was in 1999 put at six per cent, in 2022 put at 22 per cent but which as of today is approaching 40 per cent, weak governance and corruption as well as climate change, as some of the factors that contributed or fuelled insecurity in the country.
He also listed proliferation of small arms and violent crimes across the country as a sore thumb, lamenting that there were more arms with some non-state actors put in their hands by desperate politicians and which at the end of elections, were not retrieved from them and on which they now depended to survive.
Saying that hope was not lost, Imoke declared that successive administrations had succeeded in degrading Boko Haram and recovering territories in the Northeast hitherto seized by the group.
According to him, “The military was able to degrade the group and reclaim the areas in the Northeast around Maiduguri.”
He listed other successes as the decrease in Boko Haram insurgency and deaths by 23 per cent according to the global terrorism index, adding that “there is also reduction of militancy in the Niger Delta as there is no more MEND in the region.”
He continued: “Oil production has significantly rebounded until recently because during the era of MEND, oil production dropped below 1.5 m barrels per day.
“There is anti-piracy measure launched through NIMASA and international collaborators to reduce the piracy in the Gulf of Guinea. Piracy decreased by 58 per cent between 2020 and 2021 in the Gulf of Guinea.
“In the Southeast, the arrest of Nnamdi Kanu is an achievement in the region…Nigerian government has increased its surveillance measures; its counter insurgency operation has been used in combating terrorism. We now have drone technology and others to attack security issues across the board. The persistent Boko Haram issue has been watered down, but there is a humanitarian issue. About 2.7m people have been affected. The UN said that 350,000 people have died as a result of insurgency.”
He, however, noted that Herder-farmers’ conflict was still ongoing, pointing out that over 2,600 people were reportedly killed in 2021 alone.
The former Cross River State governor said that continued separatist agitation had led to the death of police officers as well as IPoB members, adding that there had been extra judicial killings and arbitrary arrests, among others.
He said a multifaceted approach was required to effectively tackle security issues in Nigeria, recommending among others community policing, which should be legally regulated, deployment of vigilance groups in securing the communities, and giving consideration to decentralisation of security rather than centralisation that has not worked.
He also established a nexus between security and economy, arguing that “until we can address the state of our economy, we will not able to address security issues effectively.”
He stated that education, skill acquisition, entrepreneurship training, and access to SMES funding were key, adding that a strong and comprehensive rural development programme was necessary to address banditry and farmer-herder conflicts.
“I am a strong believer in peace and mediation. If the government can establish dialogue platforms between farmers and herders, it would reduce competition over land,” he said.
He also said that the procurement process must be transparent and resources should be deployed in the welfare and training of security personnel, adding that the nation’s judicial system must be able to tackle impunity.
While dwelling on power deficit, Imoke said that there was a lack of continuation of policies and programmes, pointing out that “your predecessor is your most valuable material. We always assume that our predecessor did not know anything, and there is a tendency to want to start afresh. It is important for me to always go back to my predecessor to ask for guidance.”
Admitting that electricity problem in Nigeria is the most humongous problem ever, Imoke said that with over 200 million Nigerians, the country’s installed capacity was like 13,000 megawatts. He said: “It sounds like good news, but we only manage to distribute an average of 4,000 megawatts whereas there are potential distributable 20,000 megawatts.”
He reeled out some sobering comparative statistics about per capita electricity consumption by Nigeria and some countries on the African continent based on recent data.
According to the data referred to by Imoke, “Nigeria per capita electricity consumption is between 150 and 200 kilowatts hours per year (kilowatts hour is the amount of electricity delivered to each household in the country in a year); Ghana is between 800 and 1000 kilowatts hour per year; South Africa is between 4000 and 5000 kilowatts hours per year while Ivory coast is between 500 and 600 kilowatts hour per year.”
Imoke lamented the Nigerian situation, adding that “these tell you the strengths of industrial bases of these countries.”
He, however, noted that despite numerous reforms in Nigeria, the power sector had continued to struggle.
Imoke asked if there was a solution in the face of growing demand? He resolved the question somewhat in the negative, pointing out that with the exponential growth in Nigerian’s population, there was a concomitant rising demand on the electricity supply.
On the transitioning to digital economy, Imoke said the growth in e-commerce platforms like Jumia and others was allowing for competition and efficiency.
According to him: “We are in the fourth industrial revolution, and it is a digital revolution. We missed out on the first, second, and third industrial revolutions. It is for us now as a nation, with a deliberateness of government policy, not to lose out on the fourth industrial revolution.
“All the three sectors-security, power and digital economy – are critical to our growth. The three are intertwined challenges that Nigerian must address to unlock her potential.
“With the collective effort of all, Nigerian can truly emerge as a global leader. Let us seize this moment to build a secure, electrified, and digitalized Nigerian that offers prosperity, growth, and development to all.”
The Special Adviser to the President on Energy, Olu Verheijen, has called for Nigeria to translate increased oil and gas production into broader economic development, saying the country must use its energy resources to strengthen industries, create jobs and improve living standards.
Verheijen said the next phase of Nigeria’s oil and gas development should go beyond increasing production figures to building national productive capacity, stressing that investment recovery must deliver tangible benefits across the economy.
She made the call in an address titled, “Unlocking more barrels: From recovery to national renewal” at the 44th annual international conference and exhibition of the Nigerian Association of Petroleum Explorationists (NAPE), where she outlined exploration, local capacity development and technology as key priorities for the sector.
Her comments came at a time Nigeria’s oil production has recorded steady improvement with the country meeting OPEC production in the last six months.
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According to the presidential aide, Nigeria has made progress in restoring investor confidence, but must now translate improved investment conditions into higher production, stronger revenues and economic opportunities.
Using the IMA gas field as an example, Verheijen highlighted the lengthy delays that had constrained the development of Nigeria’s resources. Discovered in 1973, the field reached a final investment decision in September 2026, more than five decades after its discovery.
She said the delay reflected weaknesses in the country’s investment environment rather than a lack of resources, including unclear responsibilities, slow contracting processes, uncompetitive economics and unreliable access to customers.
Verheijen attributed efforts to address these challenges to the policy direction of President Bola Ahmed Tinubu, saying the government had worked with ministries, regulators, the Nigerian National Petroleum Company, operators and investors to improve the investment proposition.
She explained that fiscal reforms were designed to reward production, protect existing revenues and provide incentives suited to different resources. In the gas sector, she said, incentives had to be supported by commercial arrangements and access to customers to make projects financially viable.
She cited the opening of opportunities for third-party gas supply to Nigeria LNG as part of efforts to improve the commercial prospects of gas developments.
Verheijen noted that Ubeta and Bonga North reached final investment decisions in 2024, while IMA had since joined the list of projects moving into execution.
She said the government’s responsibility was to ensure the projects were delivered while improving output from existing assets.
On exploration, the presidential adviser said Nigeria needed to replenish its resource base through credible exploration programmes, reliable geological data and development plans that considered infrastructure and markets from the outset.
She added that improved reservoir understanding, infill drilling and enhanced recovery could support near-term production, but should complement rather than replace new discoveries and developments.
Verheijen also urged operators to present clear investment proposals, including the capital, technical capacity and execution plans required to develop their assets.
On local capacity, she said the growing role of Nigerian independent oil companies presented opportunities to expand onshore and shallow-water production, while international companies focused on deepwater and integrated gas projects.
However, she stressed that Nigerian ownership must be matched by strong governance, sound finances, technical competence and responsible environmental and community practices.
“Local content should leave Nigeria more capable after a project than before it began,” she said, adding that the policy should produce engineers capable of leading major developments and fabrication companies able to compete internationally.
She also called for greater adoption of technology, including improved seismic interpretation, reservoir modelling, digital monitoring and methane measurement, to reduce operating costs, improve recovery and make operations safer.
Verheijen said artificial intelligence could strengthen the work of industry professionals but would not replace the need for reliable data and sound technical judgement.
She further argued that oil, gas and power should be treated as parts of one national economic strategy, noting that dependable energy supply was essential for manufacturing, agriculture and job creation.
According to her, oil production can support export earnings and public finances, while gas can supply industries, electricity generation and export markets. However, she warned that gas projects would only be commercially viable if suppliers had confidence that customers would pay.
She identified the resolution of legacy debts in the power sector, improved metering and targeted support for vulnerable electricity consumers as necessary measures to strengthen the energy value chain.
The adviser said Nigeria must also prepare to compete for investment against emerging oil and gas destinations in Africa and elsewhere, adding that temporary disruptions in other producing countries should not form the basis of its investment strategy.
She urged government and industry to ensure that reforms translated into measurable improvements in the lives of Nigerians.
“A family struggling with the cost of living cannot spend a forecast. A business cannot run on a policy announcement,” she said, calling for sustained delivery and accountability.
Verheijen said the country’s progress should continue to be measured by reserves, revenues, reliability and responsibility, adding that the ultimate objective was to build an industry capable of developing Nigeria’s resources and supporting a more productive economy.
To bridge Nigeria’s estimated $200 billion gas infrastructure funding gap over the next decade, the Midstream and Downstream Gas Infrastructure Fund (MDGIF) is stepping up efforts to attract private sector and foreign investments.
This was revealed during the commissioning of five Compressed Natural Gas (CNG) daughter and last-mile retail stations established by Ibile Oil and Gas Corporation (IOGC) in collaboration with MDGIF, in Lagos, the Executive Director of MDGIF, Oluwole Adama.
According to Adama, the scale of investment required to develop Nigeria’s gas infrastructure was beyond the financial capacity of the fund, making partnerships with Development Finance Institutions (DFIs), Foreign Investment Funds (FIFs) and private sector players critical to achieving the country’s gas development objectives.
He maintained that the MDGIF is positioning itself as a catalytic institution to de-risk investments, unlock additional financing and encourage businesses to commit capital to infrastructure projects across the gas value chain.
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He explained that the fund’s mandate went beyond providing direct financing, stressing that its primary responsibility was to create an enabling environment for investments in gas processing plants, gas capture projects, pipelines, CNG refuelling stations, terminals and storage facilities.
“An estimate a few years ago put the investment required to close Nigeria’s gas infrastructure deficit at about $20 billion annually for 10 years. That is approximately $200 billion. What MDGIF can do is limited in terms of the resources available to us, so we see ourselves as a catalytic agent,” he said.
Adama disclosed that the fund had secured a $500 million debt facility and was pursuing additional financing arrangements, including risk guarantees, to attract more investors into the sector.
He said MDGIF had engaged the United States Development Finance Corporation (DFC) on opportunities to mobilise further funding for gas infrastructure projects in Nigeria.
The objective, he explained, was to reduce investment risks, particularly at the early stages of project development, and unlock larger pools of capital from international financiers and private investors.
Adama also disclosed that the fund had supported more than 25 infrastructure projects, with about 18 already commissioned in less than two years.
He noted that the development of gas infrastructure required considerable time, involving project design, engineering, equipment manufacturing, shipping, port clearance and construction, adding that Nigerians should recognise that such investments could not be delivered overnight.
Earlier, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said the Federal Government was intensifying efforts to increase domestic gas utilisation and expand infrastructure to make natural gas more accessible to Nigerians.
He disclosed that domestic gas supply had increased from about 1.6 billion cubic feet to 2.2 billion cubic feet daily, attributing the improvement to growing investments in the sector and the government’s policy direction under President Bola Tinubu.
According to him, the government is working with private sector investors to address infrastructure and supply challenges, noting that increased demand for gas would continue to attract investments into the sector.
The minister stressed that the government alone could not establish the infrastructure required to deepen gas utilisation, making private sector participation indispensable.
He commended MDGIF for its catalytic role in supporting infrastructure development and attracting investments into the gas sector.
Also speaking, the IOGC Managing Director and Chief Executive Officer, Tayo Gbajumo, said the corporation was expanding its CNG infrastructure in Lagos as part of its mandate to establish 15 stations across the state.
He disclosed that five additional stations had been commissioned in Abule-Egba, Ajah, Oko-Oba, Idimu and Ogolonto, while the remaining six were at various stages of completion and expected to be commissioned by the first quarter of 2027.
Gbajumo said the facilities were designed to improve access to affordable energy, reduce transportation costs for businesses and households, and support the adoption of CNG-powered vehicles.
The five stations, supported by MDGIF, have a combined storage capacity of 45,640 standard cubic metres and are expected to serve approximately 8,400 vehicles daily at full capacity, according to Adama.
Gbajumo commended the Federal Government, the Lagos State Government and MDGIF for their support, saying the partnership demonstrated the importance of collaboration between government institutions and industry stakeholders in expanding gas infrastructure.
In a confirmation of expectations that more policy adjustments will not occur until 2027, OPEC+ oil-producing countries have voted to keep December production targets steady.
The OPEC+ alliance, yesterday, agreed in principle to keep its combined December oil output targets unchanged at 30.9 million barrels per day (bpd), with Saudi Arabia’s individual target held at 10.5 million bpd.
The resolution was passed at a virtual meeting attended by seven core OPEC+ members- Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman.
This is as the group continues to struggle with export disruptions from the Middle East crisis, while Gulf members have been boosting exports that have been disrupted for months by the conflict, most are still pumping well below their targets.
OPEC+ comprises the Organisation of the Petroleum Exporting Countries (OPEC) and allies including Russia. Only the seven members — plus the United Arab Emirates (UAE) until it quit OPEC in May — have been involved in monthly output decisions in recent years.
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All members of the 21-country group are due to meet on November 29, when it will decide 2027 quotas.
“Today’s decision was the easy one,” said Jorge Leon, an analyst at Rystad. “The much more important test comes at the November 29 ministerial meeting, when OPEC+ will decide its 2027 production framework.”
Oil prices jumped more than two per cent on Friday, with Brent crude settling at almost $118 a barrel, the highest since April, as traders braced for a potential escalation in the Iran war after the US midterm elections.
“OPEC+ faces an extremely difficult call for 2027,” Leon added. “The group has to plan around huge uncertainty over the US-Iran war, the pace of recovery through the Strait of Hormuz, and the size of the surplus that could emerge once disrupted barrels return.”
The seven members have been boosting output targets for much of 2026 and in September completed the phased rollback of a 1.65 million-barrel-per-day supply cut first agreed in 2023. At earlier meetings, they kept the targets steady for October and November.
OPEC+ still has one more layer of production cuts of about two million bpd covering most members through the end of 2026.
The group needs to complete a review of members’ production capacity during the fourth quarter before setting the 2027 baselines that will determine future quotas and shape plans to unwind those cuts, sources have said.
The Iran war has disrupted projects to expand capacity across the Middle East, throwing estimates of future production potential into uncertainty, Reuters reported in October. As a result, the review is now expected to be completed by mid-November.
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