Power Crisis: Tinubu Orders Settlement Of ₦185 Billion Gas Arrears
President Tinubu has approved ₦185 billion to settle debts owed to gas producers, aiming to boost Nigeria's power generation.Summary
The Nigerian Federal Government, under President Bola Tinubu, has approved ₦185 billion to resolve longstanding debts owed to natural gas producers supplying power generation companies. This decision, endorsed by the National Economic Council, is a significant intervention intended to address stalled investment and improve gas supply for power generation, which has been a major contributor to Nigeria’s power shortages. The payment will be executed through a royalty-offset arrangement and is expected to restore confidence among gas suppliers.
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, hailed the move as vital for revitalizing the gas sector and strengthening power generation capacity, aligning with the Decade of Gas Initiative which aims to unlock over 12 billion cubic feet per day of gas supply by 2030. Clearing the arrears is anticipated to rebuild trust between the government and producers, encouraging new investments and boosting gas output.
The initiative is expected to stimulate economic growth by providing reliable energy for industrialization, job creation, and competitiveness. Director of the Decade of Gas Secretariat, Ed Ubong, emphasized the President’s commitment to fixing structural weaknesses in the gas value chain and unlocking stalled projects, ultimately supporting Nigeria’s transition to a gas-driven economy.
(Source：Naija News)