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.
French Prime Minister Sébastien Lecornu said on Monday (19 January) that the government will use special constitutional powers to force the passage o...
Syrian President Ahmed al-Sharaa and U.S. President Donald Trump discussed developments in Syria during a phone call on Monday, including Kurdish righ...
Turkish President Recep Tayyip Erdoğan said on Monday (19 January) that an agreement reached between the Syrian government and Kurdish-led forces mus...
Azerbaijan is commemorating the 36th anniversary of the events of 20 January 1990, known as Black January, one of the most defining and painful chapte...
Bulgaria’s President Rumen Radev said on Monday that he will resign from office, fuelling speculation that he may form his own political party ahead...
Here are the latest stories from AnewZ’s Africa News programme, focusing on political and security developments across the African continent.
British boxing star Anthony Joshua has suffered minor injuries after a car crash in Nigeria that killed two other people.
U.S. President Donald Trump on Friday said he ordered a military strike targeting Islamic State (ISIS/Daesh) militants in Nigeria to be delayed by one day, calling the attack a “Christmas present” to the terror group.
The United States carried out a strike against Islamic State militants in northwest Nigeria at the request of Nigeria's government, President Donald Trump and the U.S. military said on Thursday.
Italian Prime Minister Giorgia Meloni said on Saturday (17 January) that concerns over security in Greenland should be addressed within the framework of NATO, describing a ground military intervention as highly unlikely.
Elon Musk is seeking up to $134 billion from OpenAI and Microsoft, arguing that the companies profited unfairly from his early support of the artificial intelligence firm, according to a court filing made public on Friday.
Italian fashion designer Valentino Garavani has died at the age of 93, his foundation said on Monday.
European leaders voiced growing alarm on Sunday over U.S. threats to impose tariffs on eight NATO allies, warning the move could destabilize transatlantic relations and heighten tensions in the Arctic.
Syrian President Ahmed al-Sharaa has signed a decree recognising Kurdish language rights, as government forces advanced against U.S.-backed Kurdish-led fighters despite U.S. calls for restraint.
Morocco’s King Mohammed VI has accepted an invitation from U.S. President Donald Trump to become a founding member of the U.S.-led Board of Peace, while France has declined to take part, citing concerns over the body’s mandate.
Bulgarian President Rumen Radev said on Monday (19 January) that he will resign from office, a move that has fuelled speculation he may form a political party ahead of upcoming parliamentary elections.
French Prime Minister Sébastien Lecornu said on Monday (19 January) that the government will use special constitutional powers to force the passage of the 2026 budget without a parliamentary vote, despite earlier pledges to avoid doing so.
Bulgaria’s President Rumen Radev said on Monday that he will resign from office, fuelling speculation that he may form his own political party ahead of upcoming parliamentary elections.
Italian fashion designer Valentino Garavani has died at the age of 93, his foundation said on Monday.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment