Nigeria Settles N185 Billion Gas Debt

Nigeria's federal government, led by President Bola Tinubu, has authorized and commenced the settlement of N185 billion in long-standing debts owed to natural gas producers. This move, endorsed by the Nigeria — National Economic Council headed by Vice President Kashim Shettima, is a significant intervention aimed at revitalizing the gas industry and stabilizing power generation. The legacy debts had strained cash flow for gas producers, hindered operations, discouraged investment, and reduced gas supply, exacerbating Nigeria's power shortages. The payment, executed through a royalty-offset arrangement, is expected to restore confidence among domestic and international gas suppliers, accelerate exploration and production, and ultimately boost Nigeria's gas output. Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, and Coordinating Director of the Decade of Gas Secretariat, Ed Ubong, both highlighted the importance of this action in strengthening the gas sector, improving power supply, and attracting new investments, aligning with the 'Decade of Gas' initiative.