The Federal Government has approved the payment of N185 billion owed to natural gas suppliers in a move aimed at improving electricity generation and easing liquidity pressures in the sector.
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, disclosed the development in a statement released by his media aide, Louis Ibah, on Thursday.
According to him, the approval was granted on Wednesday by the National Economic Council, chaired by Vice President Kashim Shettima.
Ekpo explained that the long-standing debts had weakened cash flows for gas producers, slowed investments, and limited deliveries to power plants, worsening Nigeria’s persistent electricity shortages.
“The payment, to be executed through a royalty-offset arrangement, is expected to restore confidence among domestic and international gas suppliers who have long expressed concern about persistent indebtedness in the sector,” the statement said.
He described the approval as a decisive step toward revitalising Nigeria’s gas sector and strengthening 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 of gas per day by 2030.
Ed Ubong, Coordinating Director of the Decade of Gas Secretariat, said the approval signals the government’s commitment to addressing structural weaknesses in the gas-to-power value chain.
“It could unlock stalled projects, revive investor interest, and rebuild momentum behind Nigeria’s transition to a gas-driven economy,” Ubong said.
