Oluwafunbi Bello 
Minister of State for Petroleum Resources (Gas), Dr. Ekperikpe Ekpo,
ABUJA, Nigeria – Nigeria takes a major step to stabilise its troubled electricity sector as the Federal Government approves the payment of N185 billion owed to natural gas producers.
The Minister of State for Petroleum Resources (Gas), Dr Ekperikpe Ekpo, announced the approval on Thursday, confirming that President Bola Tinubu authorised the payment with backing from the National Economic Council. He describes the move as “a decisive step toward revitalising Nigeria’s gas sector”.
The legacy debts, accumulated over several years, have strained producers’ finances and discouraged further exploration. Industry analysts warn that the arrears created a cycle of underinvestment, worsening gas shortages and deepening Nigeria’s chronic electricity crisis.
“Settling the debts is crucial to rebuilding trust between the government and gas producers,” Ekpo says. “Many have slowed new investments due to persistent uncertainties over payments.”
The settlement, structured through a royalty-offset mechanism, is designed to reassure suppliers—both domestic and international—who have repeatedly raised concerns about unpaid obligations.
Ekpo says the approval aligns with the Decade of Gas initiative, which aims to unlock over 12 billion cubic feet of gas per day by 2030. He notes that a stronger gas sector will bolster electricity supply, support industrial growth and enhance economic competitiveness. “This decision underlines the Federal Government’s determination to clear legacy liabilities,” he says.
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Oluwatobi Adu 
Korede Abdullah 
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