Nigeria approves $128 million payment for gas debts in bid to boost power supply

Nigeria has approved the payment of 185 billion naira ($128 million) in longstanding debts owed to gas producers for supplies to power generators, aiming to restore confidence in the energy market and improve electricity supply. The National Economic Council, chaired by the vice president, approved the decision following President Bola Tinubu's directive to clear arrears that have discouraged investments, strained cash flows, and curtailed gas supply for power generation, the minister of state for petroleum said.

Nigeria has approved the payment of 185 billion naira ($128 million) in longstanding debts owed to gas producers for supplies to power generators, aiming to restore confidence in the energy market and improve electricity supply.

The National Economic Council, chaired by the vice president, approved the decision following President Bola Tinubu's directive to clear arrears that have discouraged investments, strained cash flows, and curtailed gas supply for power generation, the minister of state for petroleum said. Ekperikpe Ekpo said the settlement, to be implemented through a so-called "royalty-offset arrangement", was a "decisive step" towards revamping Nigeria's gas sector and stabilising electricity output, adding that the move aligned with a government initiative to almost double gas output to 12 billion cubic feet per day by 2030.

Nigeria, Africa's most populous country, continues to face persistent electricity shortages, which have hindered business operations and economic growth for decades. ($1 = 1,447.3300 naira)