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.
Fuel restrictions have returned to parts of Moscow and the surrounding region, adding another strain to Russia&...
Russian ballistic missile strikes on Ukraine’s capital Kyiv has killed at least sixteen people and injured more than forty oth...
Azerbaijan’s support for Ukraine could provide a model for neighbouring countries seeking to strengthen their sovereignty, the director of de...
The collective-defence agreement between Türkiye, Saudi Arabia and Pakistan signals that regional powers no longer want to rely solely on external security guarantees. Whether it becomes a stabilising deterrent or another axis of rivalry remains unresolved.
Shipping through the Strait of Hormuz has slowed, according to the latest data, as uncertainty over the waterway’s reopening kept most shipowners away. Six commodity vessels crossed the strait on Tuesday, down from nine the day before and below the 10-day daily average of 11.
Shipping traffic through the Strait of Hormuz remains limited on Thursday, with no increase in vessel crossings as U.S.-Iran talks to resolve the conflict remained stalled. Nine commodity vessels transited the key waterway on Wednesday, unchanged from the previous day, according to Kpler data.
Iran has said the Strait of Hormuz will remain closed until the U.S. fulfils the terms of an interim deal, including lifting the maritime blockade and sanctions and releasing Iran’s frozen assets.
Start your day informed with AnewZ Morning Brief. Here are the top news stories for the 19th of August, covering the latest developments.
Shipping traffic through the Strait of Hormuz remains limited on Thursday, with no increase in vessel crossings as U.S.-Iran talks to resolve the conflict remained stalled. Nine commodity vessels transited the key waterway on Wednesday, unchanged from the previous day, according to Kpler data.
South Korea estimates North Korea possesses between 80 and 120 nuclear warheads, its defence minister said on Thursday, citing a range significantly higher than U.S. President Donald Trump's recent assertion that Pyongyang has 57 nuclear weapons.
Russian ballistic missile strikes on Ukraine’s capital Kyiv has killed at least sixteen people and injured more than forty others, Ukrainian officials said, with fires reported across the city and Poland activating defensive air operations.
Start your day informed with AnewZ Morning Brief. Here are the top news stories for the 20th of August, covering the latest developments.
Britain has summoned Israel’s chargé d’affaires and demanded that the Israeli government withdraw a tender for construction in the controversial E1 settlement area in the West Bank.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment