Key points
- Stakeholders call for sustained reforms, investment and PPPs to drive energy-led growth.
- Nigeria has vast oil, gas and renewable energy resources but struggles with conversion to output.
- Energy reforms (including PIA, subsidy removal and FX reforms) are improving investment outlook.
- Gas is being prioritised for industrialisation, power and exports.
- Power sector debt and metering gaps remain major challenges.
Main Story
Stakeholders across the energy sector have called for sustained reforms, increased investment and stronger public-private partnerships to convert Nigeria’s vast energy resources into economic growth and industrial development.
They made the call on Thursday in Lagos at the Nigerian-British Chamber of Commerce (NBCC) 2026 Energy Day themed “Energy in Nigeria: From Potential to Reality”. The President of NBCC, Mr Abimbola Olashore, said Nigeria stands at a defining moment in its energy transition as Africa’s largest oil producer with significant natural gas and renewable energy potential. He said: “Nigeria stands at a defining moment in its energy transition.”
He added that beyond oil and gas, the country has renewable energy resources capable of powering industries, homes and businesses. The Special Adviser to the President on Energy, Mrs Olu Verheijen, said Nigeria’s core challenge is converting potential into measurable outcomes. She said energy reform is central to national competitiveness across manufacturing, agriculture, transport, jobs and currency stability.
She said: “That is the work President Bola Tinubu has mandated us to do; to move Nigeria’s energy sector from promise to performance.” She noted that subsidy removal and FX reforms have improved public finances and investment conditions. She added that federation revenue rose to about N21 trillion in 2024 from about N12 trillion in 2023.
She said local refining has also reduced petrol imports and eased pressure on foreign exchange.Verheijen said government is prioritising gas for industrialisation, power generation, petrochemicals and export growth. She also said a power sector debt programme of up to N4 trillion has been approved to clear verified arrears and restore investor confidence. She added that Nigeria’s metering rate has risen to about 57 per cent, with plans to deploy seven million additional meters in partnership with the World Bank.
She said: “To move from financial stabilisation to service delivery, to expand access and reliably power Nigeria’s industrial ambitions; that is where the NBCC has a role.” The British Deputy High Commission in Lagos, Ms Grace Bell, said the UK sees Nigeria’s energy sector as a major area for cooperation.
She said: “The UK-Nigeria relationship is strongest when anchored on practical collaboration between businesses supported by the right policy environment.” The Chairman of NBCC Energy Group, Mr Taaj Shobayo, said progress will depend on converting resources into reliable energy and investment inflows. Managing Director of Aradel Holdings, Mr Adegbite Falade, said indigenous producers will play a key role in shaping Nigeria’s energy future. He urged accelerated investment in oil, gas and gas development, noting that reliable electricity remains critical to productivity and growth.
The Issues
- Gap between energy potential and actual output
- Infrastructure and power reliability constraints
- Power sector debt burden
- Investment uncertainty despite reforms
- Slow expansion of electricity access and metering gaps
What’s Being Said
- NBCC President, Abimbola Olashore: “Nigeria stands at a defining moment in its energy transition.”
- Olu Verheijen: “That is the work President Bola Tinubu has mandated us to do; to move Nigeria’s energy sector from promise to performance.”
- Olu Verheijen: “To move from financial stabilisation to service delivery, to expand access and reliably power Nigeria’s industrial ambitions; that is where the NBCC has a role.”
- Grace Bell: “The UK-Nigeria relationship is strongest when anchored on practical collaboration between businesses supported by the right policy environment.”
What’s Next
- Continued energy sector reforms and investment drive
- Expansion of gas infrastructure and renewable integration
- Debt resolution and power sector stabilisation programme rollout
- Increased private sector participation in electricity and gas value chains
Bottom Line
Nigeria’s energy sector is undergoing reform-driven repositioning, but stakeholders say real impact will depend on turning policy progress and resource wealth into reliable power supply, industrial output and economic growth.
