The Federal Government of Nigeria has taken a significant step toward revitalizing the gas industry and stabilizing power generation. President Bola Tinubu has authorized the settlement of ₦185 billion in long‑standing debts owed to natural‑gas producers, a move endorsed by the National Economic Council. The payment will be made through a royalty‑offset arrangement and is intended to restore confidence among both domestic and international gas suppliers.
Minister of State Petroleum Resources Ekperikpe Ekpo described the approval as “a decisive step towards revitalizing Nigeria’s gas sector and strengthening its power‑generation capacity in a sustainable manner.” The intervention aligns with the Decade of Gas initiative, which aims to unlock more than 12 billion cubic feet per day of gas supply by 2030. Settling these legacy debts is crucial for rebuilding trust between the government and gas producers, many of whom have delayed or halted new investments due to payment uncertainties.
Improved financial stability is expected to revive upstream activity by accelerating exploration and production, thereby boosting Nigeria’s gas output. An increased gas supply will enhance power generation and help alleviate the chronic electricity shortages that hinder businesses across the country. Reliable energy, in turn, underpins industrialization, job creation, and competitiveness, stimulating broader economic growth.
Better fiscal discipline and greater transparency in the sector should attract fresh investment from both local and foreign players. Coordinating Director of the Decade of Gas Secretariat Ed Ubong said the approved plan to clear gas‑to‑power debts sends a powerful signal of President Tinubu’s commitment to addressing structural weaknesses across the value chain. Clearing the legacy debts is a significant step toward unlocking stalled projects, reviving investor interest, and rebuilding momentum for Nigeria’s transition to a gas‑driven economy. With confidence restored among gas suppliers, the government hopes to increase gas supply, improve power generation, and drive sustained economic development.
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