FG moves to settle legacy gas debts, boost investor confidence
By Motolani Oseni
The Federal Government has unveiled plans to settle outstanding debts owed to gas producers, including long-standing legacy obligations, in a bid to restore confidence and drive investment in Nigeria’s gas sector.
Mr Abel Nse, Senior Technical Adviser to the Minister of Petroleum Resources (Gas), disclosed this during a panel session hosted by Sahara Group on Friday in Lagos. Themed “Harnessing Gas for Africa’s Sustainable Future,” the session explored energy solutions to unlock the continent’s development.
Nse said President Bola Tinubu had directed all relevant ministries and agencies to prioritise the resolution of these debts.
“The Federal Government is committed to gradually offsetting the outstanding debts,” he said, adding that reforms are also underway in gas pricing, flare penalties, infrastructure, supply receivables, and LPG availability to encourage upstream investment.
He emphasised the government’s push to increase gas utilisation as part of efforts to spur domestic industrialisation and economic growth.
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“This is a wake-up call for Nigeria to optimise its gas resources effectively. Gas has the potential to transform the sector and drive broader economic progress,” he stated.
On gas flaring, Nse noted that Nigeria has reduced flaring to below one per cent, though he acknowledged that the low penalties provide little incentive for further progress.
Mrs Ijeoma Isichei, Head of Business Development (Gas) at Sahara Group, described gas as a reliable transition fuel capable of accelerating industrialisation, creating jobs, and expanding energy access.
Similarly, Mariah Lucciana-Gabriel, Head of Integrated Gas Ventures at Asharami Energy, stressed that Nigeria has sufficient gas reserves to support its energy transition.
“We must remain focused on developing an energy mix tailored to Nigeria’s realities,” she said.
However, Mr Mobolaji Sumonu, Lead, Upstream at Fidelity Bank Plc, warned that many gas projects remain unbankable due to insecurity, inadequate infrastructure, and limited financing options.
“To attract funding, projects must demonstrate viability,” he said.
Also speaking, Mr Adeola Yusuf, Lead at Platform Africa, called for improved collaboration between industry players and the media. He criticised the government’s slow pace in tackling gas flaring and enhancing domestic access to gas, noting that 80 per cent of Nigerian women still lack access to clean cooking gas.
He warned that without urgent action, the country risks losing trillions of Naira to wasted gas resources.
