In a significant move aimed at stabilizing the nation’s fragile electricity grid and restoring investor confidence, Nigeria’s government has authorized the settlement of $128 million (or 185 billion naira) in historical debts owed to companies supplying gas for power generation.
The National Economic Council (NEC), led by the Vice President, formally sanctioned the payout. This action directly follows a mandate issued by President Bola Tinubu to resolve these long-standing arrears. As stated by the Minister of State for Petroleum, Ekperikpe Ekpo, the unpaid bills had severely hampered investment in the energy sector, strained the financial viability of gas producers, and ultimately limited the fuel available for power plants.
Ekpo characterized the debt settlement, which will be facilitated via a “royalty-offset arrangement,” as a crucial and “decisive step” toward revitalizing Nigeria’s gas industry and securing consistent electricity production. Furthermore, this initiative supports the government’s ambitious long-term goal: to nearly double current gas output to 12 billion cubic feet daily by the year 2030.
This decisive action addresses a core obstacle to economic development, as the nation—Africa’s most populous—has endured decades of chronic electricity scarcity, a factor that continues to be a major drag on business activity and overall growth.
