BY: Oluwatoyin Hawal Momolosho
President Bola Ahmed Tinubu has described the Final Investment Decision (FID) on Nigeria’s Ima Gas Project as evidence that reforms in the oil and gas sector are beginning to unlock resources that had remained undeveloped for decades.
Speaking after the announcement of the project on September 23, 2026, Tinubu said that “potential alone does not create jobs, finance businesses or improve the lives of our people,” arguing that the government’s responsibility was to create the conditions for natural resources to become productive investments.
The project, however, has a much longer history. The Ima gas resource was discovered in 1973 and has remained undeveloped for more than five decades. The FID by Nigerian independent oil and gas company AMNI International and TotalEnergies now moves the project into the development phase, with first gas expected in 2028.
So, what is the Ima Gas Project, why has it taken so long to develop, what has changed, and what could the project mean for Nigeria’s gas industry?
What is the Ima Gas Project?
The Ima Gas Project involves the development of a non-associated gas field located offshore Nigeria across Oil Mining Leases (OMLs) 112 and 117, in shallow waters near Bonny Island.
AMNI International holds a 60 percent working interest in the project, while TotalEnergies holds 40 percent and is the operator.
The companies reached the FID on September 23, allowing the project to move from planning and evaluation into engineering, procurement and construction.
According to TotalEnergies, the development will involve a single offshore platform connected by a 22-kilometre pipeline to the Nigeria LNG facility. Production is expected to begin in 2028, with the field expected to reach a plateau of about 350 million standard cubic feet of gas per day.
The Nigerian government and NNPC have referred to the project as an $800 million investment decision, while industry reporting and project documents have put the estimated development cost at about $1.108 billion. TotalEnergies has separately described its share of the investment as more than $600 million.
These figures refer to different descriptions of the project’s financing and development cost and should therefore be attributed to the respective sources rather than treated as identical figures.
Why has the Ima gas field remained undeveloped for more than 50 years?
The Ima gas resource was discovered in 1973, but discovery alone does not mean that a field can immediately begin producing.
A gas project requires technical studies, commercial agreements, financing, regulatory approvals, infrastructure and a viable market before investors can commit the large sums required for development.
The companies involved in the Ima project say extensive technical, commercial and contractual work preceded the FID, including front-end engineering and design and other project agreements.
The Nigerian government has also linked the project’s progression to reforms introduced under Tinubu, including presidential directives and fiscal incentives intended to make gas development more commercially attractive and reduce the time and cost associated with projects.
TotalEnergies said the Ima development followed incentives introduced by the Nigerian government for non-associated gas projects. NNPC similarly attributed the FID to the 2024 presidential directives, fiscal incentives and measures aimed at streamlining contracting and reducing development costs.
However, the available public information does not provide a complete year-by-year explanation for why the field remained undeveloped from 1973 until 2026.
It is therefore more accurate to say that the current project has benefited from recent policy, commercial and financing conditions than to claim that one particular government reform explains the entire five-decade delay.
What changed under the Tinubu administration?
The Tinubu administration has presented the Ima FID as part of efforts to improve investment conditions in Nigeria’s oil and gas sector.
According to the Presidency, the government introduced presidential directives and executive orders intended to improve competitiveness, reduce costs and delays, and provide greater certainty for investors. It also introduced incentives aimed specifically at unlocking onshore and shallow-water gas developments.
NNPC said similar measures helped enable the Ima FID, particularly the fiscal incentives for non-associated gas and efforts to streamline contracting.
TotalEnergies has also acknowledged the role of the new incentives in making the project possible.
These statements establish that the government and project partners see the reforms as an important factor in the project reaching FID. They do not, however, by themselves establish that the reforms were the only reason the project became commercially viable in 2026.
The FID is also the result of work by AMNI and TotalEnergies, including technical studies, commercial negotiations, financing arrangements and project planning.
How much gas does Ima contain?
Industry reporting puts the independently confirmed gross reserves of the Ima field at about 1.28 trillion cubic feet (Tcf) of non-associated gas.
At its expected production plateau, the field is projected to produce about 350 million standard cubic feet per day, according to TotalEnergies and industry reporting.
The Nigerian government and NNPC have used a lower figure of about 300 million standard cubic feet per day when describing the project’s expected peak production.
The difference appears to reflect different project descriptions or production assumptions. For reporting purposes, the figures should therefore be attributed to the sources that provided them.
Oil & Gas Journal reported that the field could maintain its production plateau for at least eight years.
Where will the gas go?
One of the most significant aspects of the Ima project is its connection to Nigeria’s liquefied natural gas industry.
TotalEnergies says the gas will be transported through the 22-kilometre pipeline to the Nigeria LNG facility on Bonny Island.
Once production begins, Ima is expected to provide about one-third of the gas required for the ongoing Train 7 expansion of Nigeria LNG.
Train 7 is designed to increase Nigeria LNG’s liquefaction capacity from 22 million tonnes per annum to 30 million tonnes per annum.
This means the immediate destination of the Ima gas is not primarily household electricity generation. Instead, the project is directly connected to gas supply for LNG production.
The broader effect could extend to Nigeria’s gas economy through increased gas production, LNG exports and related industrial activity, but those wider benefits will depend on the project reaching production and operating as planned.
Does the project mean Nigerians will immediately get more electricity?
Although natural gas is an important fuel for Nigeria’s electricity generation, the Ima project is being developed primarily to supply gas to Nigeria LNG’s operations.
The project could contribute to the wider availability and utilisation of Nigeria’s gas resources, but the FID itself does not mean that households will immediately receive more electricity.
There is also a difference between having gas reserves underground and having enough commercially produced and transported gas available to power plants. Infrastructure, transportation, power-sector financing and the operation of generating plants all affect how gas ultimately translates into electricity.
The Ima project should therefore not be presented as a direct solution to Nigeria’s electricity supply problems.
How many jobs could the project create?
The Nigerian government and TotalEnergies have highlighted Nigerian participation in the project.
The Presidency said about 60 percent of the workforce is expected to come from host communities, including Bonny, Finima and Andoni.
TotalEnergies also said around 60 percent of the workforce during project development is expected to come from host communities.
The government has presented the project as having potential benefits for jobs, businesses and local economic activity. Those benefits, however, will depend on the actual implementation of the project as construction and production progress.
When will Ima start producing gas?
The current target is 2028. Following the FID, the project will move into engineering, procurement and construction before commissioning and the start of production.
TotalEnergies said start-up is expected in 2028, while project reporting has put the target for first gas at October 2028. The FID is therefore an important development milestone, but it is not the same as the field already producing gas.
Further construction, installation and commissioning work must still be completed before production begins.
What does the Ima project show about Nigeria’s gas sector?
The Ima project shows that a gas resource discovered decades ago can still move into development when the technical, commercial, regulatory and financing conditions become sufficiently aligned.
It also provides a concrete example of the Nigerian government’s claim that recent gas-sector reforms are helping attract investment into previously undeveloped resources.
However, the project should not be used to suggest that Nigeria’s broader gas-sector challenges have been resolved.
The FID is a commitment to develop the field. The next test is whether the project is completed on schedule, begins production in 2028 and delivers the expected volumes and economic benefits.
What can be established from the available information?
It is established that the Ima gas resource was discovered in 1973 and remained undeveloped for more than five decades.
It is also established that AMNI International and TotalEnergies reached FID for its development in September 2026 and that the project is expected to produce gas from 2028.
The project is located offshore across OMLs 112 and 117 and is expected to supply gas to Nigeria LNG through a 22-kilometre pipeline.
The Nigerian government and TotalEnergies have both linked the project’s progress to recent policy and fiscal measures designed to encourage gas development.
What cannot be established from the available information is that one single reform or decision caused the Ima field to remain undeveloped for 53 years or that the latest reforms alone account for the project reaching FID.
The history of the project involves technical, commercial, regulatory and financing considerations, and the public record does not provide a complete account of every factor that affected its development over the decades.
Conclusion
The Final Investment Decision on the Ima Gas Project marks a significant step toward developing a gas resource discovered in Nigeria more than 50 years ago.
President Tinubu has presented the development as evidence that government reforms are creating a more attractive environment for investment in Nigeria’s gas sector. The project partners and NNPC have also pointed to recent incentives and policy changes as factors that helped move the development forward.
But FID is not the same as production. The project still has to pass through construction and commissioning before the expected first gas in 2028. Its eventual impact on Nigeria’s gas supply, LNG exports, jobs and the wider economy will therefore depend on what happens after the investment decision.
For now, what can be established is that a long-delayed offshore gas resource has moved into the development phase, with AMNI and TotalEnergies committing to take the project toward production.
