FG settles N100bn gas debts to boost power supply

The Federal Government has finalized over N100 billion in gas debts since January 2026, aiming to bolster the gas-to-power value chain, according to Mrs Olu Verheijen, the Special Adviser to the President on Oil and Gas. This settlement is part of the Presidential Power Sector Financial Reforms Programme, introduced in 2023 to encourage the use of liquefied petroleum gas for household cooking through import duty waivers and zero-rated value-added tax measures.

Verheijen emphasized that a gas-rich nation cannot tolerate families reliant on firewood. Recent reforms under President Bola Tinubu's administration have aimed to remove investment barriers, unlock Nigeria's gas resources, and promote industrialization, electricity generation, and economic growth. Nigeria has recorded four final investment decisions in gas projects in under two years, with daily gas production rising from seven billion cubic feet to eight billion cubic feet.

Verheijen noted that while Nigeria holds more than 200 trillion cubic feet of proven gas reserves, resource abundance alone does not guarantee prosperity. The government's focus on gas is crucial for electricity generation, manufacturing, transportation, fertiliser production, and cleaner cooking alternatives.