Tinubu inherited energy sector under severe strain, Presidency says

The Presidency has said Nigeria’s energy sector was in a state of severe distress when President Bola Tinubu assumed office in 2023, citing unsustainable fuel subsidies, foreign exchange distortions, low production levels and mounting power-sector debts as key challenges inherited by the administration.

Speaking at the Nigerian-British Chamber of Commerce Energy Day 2026 on Thursday, the Special Adviser to the President on Oil and Gas, Mrs. Olu Arowolo Verheijen, said the administration’s immediate priority was to stabilize the sector and rebuild investor confidence.

“When we came into office, the sector was under severe strain. Subsidies had become fiscally unsustainable. Foreign-exchange distortions had weakened investment,” Verheijen said.

She noted that crude oil production was below its potential and that debts within the power sector had crippled the gas-to-power value chain.

“Production was below potential. Power-sector debt was strangling the gas-to-power chain. The country had resources, but the system was not converting them into national value. So our first task was to stop the bleeding and rebuild the foundations,” she stated.

According to the presidential aide, the Tinubu administration responded with a series of reforms, including the removal of fuel subsidies and foreign exchange reforms aimed at restoring fiscal stability and improving the investment climate.

“Removing the fuel subsidy and reforming the exchange rate were hard decisions — but necessary,” she said.

Verheijen argued that the reforms have begun to yield results, pointing to increased government revenues, improved local refining capacity and higher crude oil production.