A strong commitment to deliver more electricity in the country is in the offing following President Bola Ahmed Tinubu’s authorization to settle N185 billion in long-standing debts owed to natural gas producers.
The federal government with this it has taken a decisive step to revitalise the gas industry and stabilise power generation.
The move endorsed by the National Economic Council (NEC) headed by Vice President Kashim Shettima, Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, said marked one of the most significant interventions in Nigeria’s energy sector in recent years, the government said.
The N185 billion legacy government obligations to gas producers for past supplies had strained cash flow and hindered operations, discouraged further exploration and production, and reduced gas supply for power generation, thereby worsening Nigeria’s power shortages and unreliable electricity supply.
The payment, to be executed through a royalty-offset arrangement, is expected to restore confidence among domestic and international gas suppliers who have long expressed concern about persistent indebtedness in the sector.
Minister of State Petroleum Resources (Gas), Ekpo, described the approval as a “decisive step towards revitalising Nigeria’s gas sector and strengthening its power-generation capacity in a sustainable manner,” a statement by his spokesman, Louis Ibah, said.
Ekpo praised Tinubu’s leadership, noting that the intervention aligns with the ‘Decade of Gas’ initiative, which aims to unlock more than 12 billion cubic feet per day (bcf/d) of gas supply by 2030.
Ekpo said clearing the arrears will deliver wide-ranging benefits, beginning with restoring investor confidence in the sector.
According to him, settling the debts is crucial to rebuilding trust between the government and gas producers, many of whom have withheld or slowed new investments due to uncertainty over payments.
Ekpo explained that improved financial stability will help revive upstream activity by accelerating exploration and production, ultimately boosting Nigeria’s gas output. Increased gas supply, he added, would also boost power generation and ease the long-standing electricity shortages that continue to hinder businesses across the country.
The minister noted that these gains are expected to stimulate broader economic growth, as reliable energy underpins industrialisation, job creation and competitiveness. He added that better fiscal discipline and enhanced transparency across the sector will further attract fresh investment from both local and foreign players.
In his intervention, Coordinating Director of the Decade of Gas Secretariat, Mr Ed Ubong, said the approved plan to clear gas-to-power debts sends a powerful signal of commitment from the President to address structural weaknesses across the value chain.
“This decision underlines the federal government’s determination to clear legacy liabilities and give gas producers the confidence that supplies to power generation will be honoured. It could unlock stalled projects, revive investor interest and rebuild momentum behind Nigeria’s transition to a gas-driven economy,” Ubong said.
Doowe – Powering Innovation. Energizing Africa.
DooweGas is on a mission to ignite the future of energy, and we want YOU to be a part of it! Our YouTube channel is the place for in-depth analysis, expert interviews, and the latest breakthroughs for professionals, investors, and policymakers in the energy sector.
Why Subscribe NOW?
Exclusive Content: Get cutting-edge insights you won’t find anywhere else.
Expert Analysis: Understand the “why” and “how” behind the biggest energy stories.
Community: Join a growing network of passionate energy professionals.
Be a Pioneer: Help us build the ultimate resource for African energy intelligence!
Discover innovative LPG solutions
Learn how we’re powering homes & businesses sustainably
Connect directly with our team
Don’t miss this chance to experience the future of energy with Doowe Gas!
Limited-Time Exclusive Offer for Our Next 900 Subscribers!
To celebrate our journey to 1000, the next 900 people who subscribe to our channel will receive an exclusive, in-depth access to our research from DooweGas on “The Future of LPG in West Africa: Opportunities & Challenges,” absolutely FREE! This is invaluable for anyone in the energy space.
Join The DooweGas Mentorship Access
With the just-concluded COP30 — the global climate conference where world leaders, financial institutions, and policymakers set new directions for sustainability, carbon markets, and future business regulations — it has become important for individuals and organisations to understand what these decisions mean and how they will affect opportunities going forward.
Engr. Dr James Atiti will be sharing the full insights, recordings, and key materials inside the Doowe Mentorship Platform for anyone who wants to stay ahead and position themselves for the new wave of ESG and climate-related opportunities.
If you’re interested in accessing this information, kindly signify to be added. The annual subscription is ₦50,000.
This knowledge matters because COP30 decisions will influence:
New ESG and sustainability requirements
Access to funding, grants, and climate finance
Business compliance and competitive advantage
You Will Also Get:
Business insights from seasoned operators
Live Monthly Sessions: With industry leaders and DooweGas experts
Sales Strategies: Learn how to scale bulk sales, B2B, and cylinder tracking
Business Support: Ask questions, get feedback, and learn from real gaspreneurs
Group Referrals: Connect with reliable vendors, customers, and suppliers
Private Group Access: 24/7 interaction and guidance from mentors and alumni
How To Join And Take Advantage Of This Opportunity
Chat up this WhatsApp number : +353 89 951 6491 to join and be a part of this energy journey.
Join the conversation. Get informed. Get empowered. Subscribe today!
Click here to subscribe and claim your FREE access: https://www.youtube.com/@doowegas/
Source: https://orientalnewsng.com/
New Podcast Release!
Decarbonizing the Seas: LPG & LNG as Clean Maritime Fuels | Doowe Podcast ft. Temisan Omatseye
If you’re passionate about the future of sustainable maritime transport, this is a conversation you don’t want to miss. In our latest Doowe Podcast episode, maritime expert Temisan Omatseye breaks down how LPG and LNG are shaping the next era of cleaner, safer, and more efficient global shipping.
From cutting-edge fuel technology to long-term decarbonization strategies, this episode is packed with insights for industry leaders, innovators, policymakers, and anyone curious about the future of the blue economy.
Watch now on YouTube:
Dive in, learn something new, and join the movement toward a cleaner maritime future. Let’s decarbonize the seas—together. 
