FG BEGINS ₦185BN GAS DEBT REPAYMENT
By: Safiya Abdulrahim Dabban
The Federal Government has approved the repayment of ₦185bn in long-standing gas debts, a move the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, says will rebuild trust with gas producers and boost power generation nationwide.
For years, unpaid gas bills weakened producers’ cash flow, discouraged new investment, and reduced gas supply to power plants, deepening Nigeria’s electricity shortages. Ekpo noted that clearing these arrears will restore investor confidence, revive exploration, and expand Nigeria’s gas output under the Decade of Gas plan.
The repayment plan, backed by the National Economic Council, will be executed through a royalty-offset system. Officials say the decision sends a strong signal that the government is committed to fixing structural issues in the gas-to-power chain.
According to Decade of Gas Secretariat head Ed Ubong, settling these liabilities could reopen stalled projects, attract fresh investment, and strengthen Nigeria’s push toward a stable, gas-driven power sector.