FG, Shell hold talks on energy reforms, new investments

The federal government has held talks with senior executives of Shell on ongoing reforms in Nigeria’s energy sector, investment opportunities, and the country’s long-term energy transition agenda.

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The Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, disclosed this in a statement posted on her official X page on Thursday.

Ms Verheijen said the discussions took place on Wednesday when Shell’s Upstream President, Peter Costello, and the company’s Nigeria Executive Vice President and Country Chair, Marno de Jong, visited the Energy Reforms Office in Abuja.

According to her, the engagement focused on key issues shaping Nigeria’s energy landscape, including the implementation of sector reforms, the role of international energy companies in advancing national energy priorities, and opportunities for collaboration to drive economic growth, energy security, and sustainability.

“Our discussions focused on broad issues shaping Nigeria’s energy sector, including ongoing reforms, the role of international energy companies in supporting national energy priorities, and opportunities for collaboration that enhance economic growth, energy security, and sustainability,” she said.

Nigeria’s energy reforms

In recent years, Nigeria has embarked on a deliberate effort to revamp its energy sector by leveraging its vast resources to achieve energy security, economic growth, and sustainable development, amid persistent challenges such as regulatory coordination and financing gaps.

Under President Tinubu’s Renewed Hope Agenda, the reforms aim to attract investment, expand access to energy, and accelerate the transition to cleaner sources. Key policy drivers include the Electricity Act 2023, the Energy Transition Plan (ETP)—which targets net-zero emissions by 2060—and increased gas-sector investments.

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Initiatives under the reform programme include grid modernisation through the Nigerian Independent System Operator (NISO) and the Presidential Power Initiative (PPI); renewable energy integration, particularly solar programmes; smart metering through the Presidential Metering Initiative (PMI) and the Distribution Sector Recovery Programme (DISREP); as well as efforts to stabilise the oil and gas sector via the Petroleum Industry Act (PIA) to boost investor confidence.

Shell has been a dominant operator in Nigeria’s oil and gas industry since the 1950s, largely through its subsidiary, Shell Petroleum Development Company of Nigeria Limited (SPDC). While its operations, concentrated in the Niger Delta, have generated significant revenue for the Nigerian government, they have also been linked to environmental degradation and social unrest, drawing sustained criticism, lawsuits, and international scrutiny.

Shell has also faced numerous lawsuits in the UK and Dutch courts, resulting in landmark rulings holding it liable for environmental damage. In 2021, a Dutch court ordered Shell to pay compensation to Nigerian farmers, marking a significant, albeit late, accountability moment.

A PREMIUM TIMES investigation last year found that several oil-producing communities, including Ogoniland, continue to suffer hydrocarbon pollution. The report showed that many residents, whose livelihoods depend on farming and fishing, have lost access to farmlands and waterways due to recurring oil spills from creeks and pipelines, often attributed to the negligence of oil companies.

On Thursday, Ms Verheijen said the government and Shell also exchanged views on creating an enabling environment for sustained, mutually beneficial investment, strengthening local value creation, and aligning global industry operations with Nigeria’s long-term energy objectives, including the energy transition.

She noted that the meeting underscored the importance of sustained dialogue between government and industry leaders in promoting shared value for the Nigerian economy.

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The federal government, she added, reaffirmed its commitment to constructive and transparent engagement with industry stakeholders, stressing that such collaboration is critical to building a resilient, competitive, and future-ready energy sector.

Shell executives, in turn, expressed continued interest in engaging with the Nigerian government as it implements reforms aimed at repositioning the energy sector for sustainable growth.