FG approves N185bn to settle gas debts to boost power supply
The federal government has approved the sum of N185 billion for the settlement of long-standing debts owed to natural gas producers for supplies to power generation firms.
In a statement on Thursday, Louis Ibah, spokesperson for the minister of state for petroleum resources (gas), said the federal government took the decisive step following President Bola Tinubu’s directive to clear arrears that have hindered investments.
He said the move, endorsed yesterday by the national economic council (NEC) headed by Vice-President Kashim Shettima, represents 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.
“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,” Ibah said
