Nigeria Approves $128m Payment to Gas Producers to Boost Power Supply
By Naija Enquirer Staff
Nigeria has approved the payment of ₦185 billion ($128 million) in longstanding debts owed to gas producers for supplies to power generators, in a bid to restore confidence in the energy market and improve national electricity supply.
The National Economic Council (NEC), chaired by the Vice President, granted approval following President Bola Tinubu’s directive to clear arrears that have discouraged investments, strained cash flows, and limited gas supply for power generation, according to the Minister of State for Petroleum, Ekperikpe Ekpo.
Ekpo said the settlement, to be executed through a “royalty-offset arrangement,” represents a decisive step toward revamping Nigeria’s gas sector and stabilising electricity output. He added that the move aligns with the government’s broader initiative to nearly double gas production to 12 billion cubic feet per day by 2030.
Nigeria continues to face persistent electricity shortages that have hindered business operations and economic growth for decades, despite being Africa’s most populous nation and holding substantial gas reserves.
*Camillus Eboh, Elisha Bala-Gbogbo. Editing: Mark Potter – Reuters
