President Bola Tinubu has welcomed the $800 million Final Investment Decision (FID) for the Ima gas project, a development expected to increase Nigeria’s gas production by 300 million standard cubic feet per day (mscfd).
The approval of the Ima project marks the fourth major gas development to reach this stage since the current administration assumed office. It follows the successful investment decisions reached on the Iseni, Ubeta, and HI gas projects.
The $800 million capital injection is intended to bolster the country’s domestic gas supply, providing much-needed feedstock for power generation and industrial processes. The announcement of the Ima gas project FID reflects an ongoing trend of securing large-scale investments to meet the objectives of the government’s “Decade of Gas” policy.
Enhancing national energy security
The addition of 300 million mscfd to the national supply is aimed at addressing the chronic gas shortages that frequently affect the power sector. By increasing the available volume of gas, the government seeks to ensure more consistent electricity production, which is a fundamental requirement for industrial growth and economic stability.
The sequence of recent FIDs—Iseni, Ubeta, HI, and now Ima—indicates a momentum in the gas sector that the administration intends to sustain. These projects are expected to attract further interest from both domestic and international investors, provided the regulatory environment remains conducive to large-scale energy developments.
The gas sector is central to Nigeria’s strategy to diversify its energy mix and reduce over-reliance on crude oil exports for foreign exchange. By developing gas infrastructure and production capacity, the country aims to create a more resilient energy landscape that supports both local manufacturing and the growing demand for liquefied natural gas (LNG) in global markets.
While the $800 million investment provides a boost to the sector, the industry remains focused on the speed of implementation. The successful transition of the Ima project from the investment phase to active production will be critical to mitigating the energy deficit currently facing the country’s industrial hubs.
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