Nigeria Allocates N185 Billion to Settle Gas Debts and Boost Sector
The Nigerian government has secured approval from the National Economic Council to allocate N185 billion for settling legacy debts owed to upstream gas producers. Minister of State for Petroleum Resources (Gas), Dr. Ekperikpe Ekpo, announced this at a recent press conference in Abuja, emphasizing that the move aims to enhance gas supply to power plants and boost investor confidence in the sector.
Ekpo highlighted that the initiative goes beyond debt settlement, focusing on restoring commercial discipline, improving supply reliability, and rebuilding trust among investors. He also reported significant progress in key infrastructure projects, including the completion of the OB3 Gas Pipeline, which can transport up to 2 billion cubic feet of gas daily and unlock over 500 million cubic feet of additional domestic gas supply.
Additionally, the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline is nearly finished, and the Midstream and Downstream Gas Infrastructure Fund (MDGIF) has attracted N1.6 trillion in private investment for 31 projects. The government aims to achieve $30 billion in gas investments by 2030, with efforts underway to expand the use of Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) nationwide.
The minister also noted that 42 companies have been contracted to convert flare gas into useful energy, feedstock, and power. Nigeria plans to end routine gas flaring by 2030 and is promoting its growing role in international energy organizations to advocate for increased gas investment and a just energy transition.