Nigeria has approved the payment of ₦185 billion (about $128 million) in longstanding debts owed to gas producers — a major move aimed at stabilising electricity supply and rebuilding trust in the country’s energy market.
The National Economic Council (NEC), chaired by Vice President Kashim Shettima, endorsed the payment following President Bola Tinubu’s directive to clear arrears that have discouraged investment, strained the financial health of gas suppliers, and limited gas deliveries to power plants.
A Decisive Step Toward Energy Stability
Minister of State for Petroleum (Gas), Ekperikpe Ekpo, described the decision as a “decisive step” in revamping Nigeria’s gas sector.
According to him, the payment will be executed through a royalty-offset arrangement, ensuring producers are compensated without putting immediate pressure on government finances.
Ekpo added that the move aligns with the federal government’s broader plan to almost double national gas production to 12 billion cubic feet per day by 2030 — a major part of Nigeria’s energy transition and industrialisation agenda.
Power Shortages Continue to Hold Back Growth
Despite being Africa’s largest population and one of its biggest energy producers, Nigeria continues to struggle with chronic electricity shortages. These power gaps have slowed business activities, increased production costs, and limited overall economic growth for decades.
By settling this debt, the government hopes to unlock more consistent gas supply to power plants, reduce downtime, and ultimately improve electricity availability nationwide.
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