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.

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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

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