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The federal government yesterday said it had taken a decisive step to revitalise the gas industry and stabilise power generation after President Bola Ahmed Tinubu authorised the settlement of N185 billion in long-standing debts owed to natural gas producers.

The move endorsed by the National Economic Council (NEC) headed by Vice President Kashim Shettima, Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, said marked one of the most significant interventions in Nigeria’s energy sector in recent years, the government said.

The N185 billion legacy government obligations to gas producers for past supplies had strained cash flow and hindered operations, discouraged further exploration and production, and reduced gas supply for power generation, thereby worsening Nigeria’s power shortages and unreliable electricity supply.

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.

Minister of State Petroleum Resources (Gas), Ekpo, described the approval as a “decisive step towards revitalising Nigeria’s gas sector and strengthening its power-generation capacity in a sustainable manner,” a statement by his spokesman, Louis Ibah, said.

Ekpo praised Tinubu’s leadership, noting that the intervention aligns with the ‘Decade of Gas’ initiative, which aims to unlock more than 12 billion cubic feet per day (bcf/d) of gas supply by 2030. Ekpo said clearing the arrears will deliver wide-ranging benefits, beginning with restoring investor confidence in the sector.

According to him, settling the debts is crucial to rebuilding trust between the government and gas producers, many of whom have withheld or slowed new investments due to uncertainty over payments.

Ekpo explained that improved financial stability will help revive upstream activity by accelerating exploration and production, ultimately boosting Nigeria’s gas output.

Increased gas supply, he added, would also boost power generation and ease the long-standing electricity shortages that continue to hinder businesses across the country.

The minister noted that these gains are expected to stimulate broader economic growth, as reliable energy underpins industrialisation, job creation and competitiveness.

He added that better fiscal discipline and enhanced transparency across the sector will further attract fresh investment from both local and foreign players.

In his intervention, Coordinating Director of the Decade of Gas Secretariat, Mr Ed Ubong, said the approved plan to clear gas-to-power debts sends a powerful signal of commitment from the President to address structural weaknesses across the value chain.

“This decision underlines the federal government’s determination to clear legacy liabilities and give gas producers the confidence that supplies to power generation will be honoured. It could unlock stalled projects, revive investor interest and rebuild momentum behind Nigeria’s transition to a gas-driven economy,” Ubong said.

Salewa97:
Good. We are gradually getting there

Morenikeji090:
God bless president tinubu may God almighty punish your enemies who hate you and those who don’t wish you good. Amen

tommykiwi:
A welcome development. Everybody likes good things, he should also look deep into the country's security challenges, very very important. Be it PDP or APC supporters, safety matters!

Tjra:
Amen. One of them is already in prison.

Emeskhalifa:
Eyyaaa sometimes I look at Tinubu and I pity him, man's just doing every damn possible thing to put the country right back on track but majority of Nigerians just got this hate for him.

Even if he successfully transforms Nigeria to America, Wallah, there are still people who will hate him.

He might not be perfect, no one is, but no one should deny that he is the most performing president we've had in recent years.

Even the Mr with failed brewery investment can't do better than this, forget about the noises he usually make at any given opportunity, just go and check the state he governed and tell me if that wasn't below average.

Mattswaggz:
Gibberish as usual.... hardly is anyone feeling the impact of all this propaganda so you expect them to be zombiies like u or what?.

Mattswaggz:
Gibberish as usual.... hardly is anyone feeling the impact of all this propaganda so you expect them to be zombiies like u or what?.

Emeskhalifa:
Good people of Nigeria won't vote for the brewery investor, you should deal with that Mr.