The Federal Government has approved ₦185 billion to settle unpaid debts owed to natural gas suppliers who have provided fuel to power generation companies over the years.
This decision follows a directive from President Bola Tinubu and was officially backed by the National Economic Council (NEC) during its meeting on Wednesday, chaired by Vice President Kashim Shettima.
Louis Ibah, spokesperson for the Minister of State for Petroleum Resources (Gas), explained that the unpaid debts have caused serious problems in the energy sector. He said the delay in payments has hurt cash flow, slowed down gas production, and worsened electricity shortages across the country.
“The ₦185 billion legacy debts, longstanding government obligations to gas producers for past supplies, have strained cash flow and hindered operations, discouraged further exploration and production, and reduced gas supply for power generation, thereby worsening Nigeria’s power shortages and unreliable electricity supply,” Ibah said.
The government plans to settle the debts using a royalty-offset od. This approach is expected to rebuild trust with both local and international gas suppliers who have been worried about the government’s ability to meet its financial commitments.
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, praised the move, calling it a major step toward fixing the gas sector and improving electricity supply. He said the decision supports the Decade of Gas Initiative, which aims to increase gas production to over 12 billion cubic feet per day by 2030.
Ekpo added that paying off the debts would encourage gas producers to invest again, helping to restart exploration and boost gas output. He also said that more gas would mean better electricity supply, which is essential for businesses and the economy.
He stressed that reliable energy is key to creating jobs, growing industries, and making Nigeria more competitive.
Ed Ubong, who leads the Decade of Gas Secretariat, said the payment plan shows that the government is serious about fixing long-standing issues in the gas industry. “This decision underlines the Federal Government’s determination to clear legacy liabilities and give gas producers the confidence that supplies to power generation will be honoured,” he said.
Ubong believes the move could help restart delayed projects, attract new investments, and push Nigeria c to becoming a gas-powered economy.
Is this really a game-cer or just another empty promise? Lets see if actions match words this time.
Wow, clearing gas debts sounds good, but will it really boost power and investor confidence? Lets wait and see! 🤔
Wow, clearing gas debts sounds great, but will it really boost power and investor confidence? Lets wait and see!
Do you think clearing gas debts will actually boost power and investor confidence in Nigeria? Lets discuss!
Do you think clearing gas debts will really boost power and investor confidence in Nigeria? Share your thoughts!
Wow, clearing gas debts sounds promising, but will it actually boost power and investor confidence? Lets wait and see.
Wow, clearing gas debts sounds positive, but will it really boost power? Lets see if the Nigerian government can deliver this time.