FG begins N185b gas legacy debt repayment

By : Sulaimon Salau

Date: 6 December 2025 5:42am WAT

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Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo

Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo

•Expect Improved Gas Supply To Power Sector, Says Ekpo As part of efforts to guarantee steady gas supply to the power stations, the Federal Government has pledged to settle the N185 billion long-standing debts owed to natural gas producers.

The move endorsed by the National Economic Council (NEC) headed by Vice President Kashim Shettima, marked one of the most significant interventions in Nigeria’s energy sector in recent years.

The N185 billion legacy debts, longstanding government obligations to gas producers for past supplies, have 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.

The Minister of State Petroleum Resources (Gas), Dr. Ekperikpe Ekpo, described the approval as a “decisive step towards revitalising Nigeria’s gas sector and strengthening its power-generation capacity in a sustainable manner.”

He praised President Bola 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 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 gas 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.

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 President Tinubu to address structural weaknesses across the value chain.

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