FG Approves N185bn to Clear Legacy Gas Debts Amid Sector Revamp

The Nigerian Federal Government has approved N185 billion to settle legacy debts owed to upstream gas producers, a move aimed at improving gas supply to power plants and strengthening investor confidence in the country's gas sector.

National Economic Council (NEC) approval is expected to restore commercial discipline and improve reliability across the gas-to-power value chain. This will also unlock more than 500 million standard cubic feet per day of additional domestic gas supply, according to Dr Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas).

The OB3 Gas Pipeline is reportedly 100% complete with a capacity to transport two billion cubic feet of gas daily. The Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline stands at about 95% completion. Compressed Natural Gas (CNG) conversions have increased from around 11,000 vehicles in 2023 to over 120,000.

The government is targeting 30 billion dollars in gas investment by 2030 and promoting a cleaner energy agenda through initiatives such as the National Grassroots LPG Penetration Programme extended to 2060. The country also aims to end routine gas flaring by 2030.