FG begins N185bn gas debt repayment to boost supply
The Federal Government has moved to restore confidence in Nigeria’s gas sector after President Bola Tinubu approved the repayment of N185 billion in long-standing debts owed to natural gas producers, a liability that has constrained supply and weakened power generation for years.
The intervention, endorsed on Wednesday by the National Economic Council (NEC) chaired by Vice-President Kashim Shettima, is seen as one of the most significant steps taken to stabilise the energy value chain in recent times.
Minister of State for Petroleum Resources (Gas), Dr Ekperikpe Ekpo, said in a statement on Thursday that clearing the arrears would deliver wide-ranging benefits, beginning with rebuilding investor trust.
The N185 billion debt, accumulated over years of unpaid supplies to the power sector, had strained the cash flow of gas producers, discouraged exploration, and triggered a drop in gas deliveries to power plants. This worsened the country’s already fragile electricity supply and forced several producers to slow or halt new investments.
The repayment, to be executed through a royalty-offset arrangement, is expected to reassure domestic and international gas suppliers who have long criticised the government’s persistent indebtedness.
Ekpo described the move as a “decisive step towards revitalising Nigeria’s gas sector and strengthening its power-generation capacity sustainably.”
He commended Tinubu’s leadership, noting that the intervention aligned with the government’s Decade of Gas initiative, which targets more than 12 billion cubic feet per day of gas supply by 2030.
He added that restoring financial stability in the sector would accelerate upstream activity, boost output and support businesses dependent on reliable electricity.
According to the minister, the renewed flow of investment and improved fiscal discipline are expected to stimulate broader economic growth, strengthen industrialisation and enhance competitiveness across key sectors.
Coordinating Director of the Decade of Gas Secretariat, Mr Ed Ubong, said the approval signalled a firm commitment by the Tinubu administration to address structural weaknesses in the gas-to-power value chain.
He noted that clearing the legacy liabilities could unlock stalled projects, revive investor interest and accelerate Nigeria’s transition to a gas-driven economy
