Categories: Energy

FG approves $128m gas debt payment to boost power supply

The Federal Government has approved the payment of N185 billion ($128 million) to settle longstanding debts owed to gas suppliers feeding Nigeria’s power plants.

The National Economic Council, chaired by Vice President Kashim Shettima, 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, Ekperikpe Ekpo, who made this known on Wednesday, 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.

US-based Nigerian CEO arrested for $7m fraud

Ekpo added 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.

The Star

Segun Ojo

Recent Posts

Obi, Kwankwaso face NDC’s no-defection rule

The Nigeria Democratic Congress (NDC) has introduced a stringent anti-defection policy requiring all its candidates…

8 hours ago

Cooking gas price’ll crash to N900/kg by year end — Marketers

The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) says retail cooking gas prices could…

9 hours ago

Appeal Court halts deregistration of ADC, four other parties

The Court of Appeal in Abuja has stayed the execution of a Federal High Court…

10 hours ago

Mass trial: FG secures conviction of 150 terrorists

The Federal Government has secured the conviction of 150 suspected terrorists out of 160 suspects…

11 hours ago

Court sentences woman to death for aiding bandits

A Federal High Court in Katsina has sentenced a woman, Hauwa’u Mukhtar, to death by…

13 hours ago

Tinubu commissions judges’ quarters, pushes judicial reforms

President Bola Ahmed Tinubu on Tuesday commissioned a newly completed 10-unit Court of Appeal Judges’…

13 hours ago

This website uses cookies.