The Federal Government of Nigeria has approved the payment of N185 billion to settle long-standing debts owed to natural gas producers. This move, endorsed by President Bola Tinubu and the National Economic Council (NEC), is seen as a major step towards revitalising the gas sector and stabilising power generation in the country.
The settlement will be executed through a royalty-offset arrangement, addressing past gas supply obligations that had strained producers’ cash flow, limited operations, and discouraged further exploration. According to Dr. Ekperikpe Ekpo, the Minister of State for Petroleum Resources (Gas), the settlement aims to restore investor confidence, boost gas supply to power plants, and alleviate electricity shortages.
This intervention aligns with the Decade of Gas initiative, targeting over 12 billion cubic feet per day of gas supply by 2030. The approval is expected to stimulate economic growth, encourage foreign investment, and ensure more reliable energy, which is essential for industrialisation and job creation.
