Nigeria has approved the payment of 185 billion naira ($128 million) to clear longstanding debts owed to gas producers, a move aimed at restoring confidence in the country’s energy market and improving electricity supply.
The payment will address arrears owed for gas supplies to power generators, which have long been a barrier to investment and a source of financial strain on the sector.
The decision was made by the National Economic Council, chaired by Vice President Kashim Shettima, following a directive from President Bola Tinubu to settle these outstanding debts. The Minister of State for Petroleum, Ekperikpe Ekpo, described the settlement as a "decisive step" toward revitalizing Nigeria’s gas sector and stabilizing electricity output. This move, according to Ekpo, is aligned with the government’s broader objective to nearly double the country’s gas output to 12 billion cubic feet per day by 2030.
The debt settlement will be implemented through a "royalty-offset arrangement," designed to reduce the financial burden on gas producers and improve cash flow within the energy sector. The arrangement is seen as a critical measure in addressing the challenges that have plagued Nigeria’s energy infrastructure, including frequent electricity shortages that have disrupted business operations and slowed economic growth for years.
Nigeria, the most populous country in Africa, has long struggled with an unreliable electricity supply, which has been a significant obstacle to development. Power outages and inadequate electricity generation have hindered industrial and commercial activities, affecting everything from small businesses to large manufacturers.
With this new initiative, the Nigerian government aims to improve the reliability of the country's electricity supply and create an environment conducive to attracting further investment in the energy sector. Clearing the gas payment arrears is expected to facilitate a more stable supply of gas to power plants, which, in turn, should enhance electricity generation capacity and support economic recovery.
By taking this step, Nigeria hopes to not only address immediate challenges in the energy sector but also build a more sustainable and efficient power generation infrastructure in the long term, contributing to the nation’s overall economic growth and stability.
The Middle East crisis intensifies after the deadly attack on the compound of the Supreme Leader of Iran Ali Khamenei on Saturday t...
The U.S.-Iran crisis has entered its third day, with further strikes reported across the Middle East and the death toll rising. Oil prices have sur...
Israel carried out heavy airstrikes on the Hezbollah-controlled southern suburbs of Beirut on Monday (2 March), af...
Türkiye and Iran have suspended day-trip passenger crossings at their shared border, Türkiye's trade minister said Monday, as a ...
China’s Foreign Minister Wang Yi has held talks with his Russian counterpart Sergei Lavrov following recent mil...
The United States is set to deploy an additional 200 troops to Nigeria as part of expanded counterterrorism cooperation, according to a senior Nigerian military source.
Security services say they have now rescued all 166 worshippers who were kidnapped by gunmen during attacks on two churches in northern Nigeria last month, a Christian group said on Thursday (5 February).
Nearly 200 people were killed when armed men launched coordinated attacks on remote villages in western and northern Nigeria, authorities and residents said on Wednesday (4 February). Officials described the assaults as among the deadliest this year, amid the country’s worsening security crisis.
Nigeria has filed 57 terrorism-related charges against nine men accused of planning and executing a June 2025 attack in Benue state that killed about 150 people.
Follow the latest developments and global reaction after the U.S. and Israel launched “major combat operations” in Iran, prompting retaliation from Tehran.
Saudi Arabia’s state oil giant Saudi Aramco closed its Ras Tanura refinery on Monday following an Iranian drone strike, an industry source told Reuters as Tehran retaliated across the Gulf after a U.S.-Israeli attack on Iranian targets over the weekend.
The Kremlin is utilising the recent United States and Israeli military strikes on Iran to validate its ongoing war in Ukraine. Russian officials are pointing to the escalation in the Middle East as evidence that Western nations do not adhere to international rules.
The Middle East crisis intensifies after the deadly attack on the compound of the Supreme Leader of Iran Ali Khamenei on Saturday that killed him, other family members and senior figures. Iran has launched retaliatory strikes on U.S. targets in the region.
Ayatollah Alireza Arafi has moved into a pivotal constitutional role following the death of Supreme Leader Ayatollah Ali Khamenei, becoming the clerical member of Iran’s temporary leadership council under Article 111 of the Constitution of the Islamic Republic of Iran.
The U.S.-Iran crisis has entered its third day, with further strikes reported across the Middle East and the death toll rising. Oil prices have surged to levels last seen during the Covid-19 pandemic, raising fears of economic disruption and higher prices worldwide.
The UK said it's allowing the U.S. to use its bases for defensive strikes against Iran amid escalating missile attacks, after a suspected drone strike hit a British airbase in southern Cyprus, causing limited damage.
The Kremlin is utilising the recent United States and Israeli military strikes on Iran to validate its ongoing war in Ukraine. Russian officials are pointing to the escalation in the Middle East as evidence that Western nations do not adhere to international rules.
European Union stands with its member states in the face of any threat, EU Commission President Ursula von der Leyen said in response to the drone strike that hit Britain's Royal Air Force base of Akrotiri in southern Cyprus overnight.
Start your day informed with AnewZ Morning Brief. Here are the top news stories for the 27th of February, covering the latest developments you need to know.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment