FG Settles N100bn Gas Debts To Boost Power Supply

The Federal Government says it has settled more than ₦100bn in outstanding gas debts since January 2026 as part of efforts to strengthen the gas-to-power value chain and improve electricity supply across the country.

The Special Adviser to the President on Oil and Gas, Mrs Olu Verheijen, disclosed this on Wednesday while delivering the keynote address at the Africa Interviews Sustainability Forum 2026 in Lagos.

She said the payments were made under the administration’s Presidential Power Sector Financial Reforms Programme, which is aimed at addressing financial challenges in the electricity sector and improving the reliability of gas supplies to power generation companies.

Verheijen also highlighted measures introduced by the Federal Government since 2023 to encourage the use of liquefied petroleum gas, commonly known as cooking gas, as a cleaner alternative to firewood.

According to her, the government introduced import duty waivers and zero-rated value-added tax measures for liquefied petroleum gas and gas cylinders to make cleaner cooking options more accessible to households.

“A gas-rich nation cannot be comfortable while families remain stuck in the age of firewood,” she said.

The presidential adviser attributed developments in the gas sector to reforms introduced under President Bola Tinubu’s administration to remove investment barriers and unlock Nigeria’s gas resources for industrialisation, electricity generation and economic growth.

She disclosed that Nigeria had recorded four final investment decisions on gas projects in less than two years, while average daily gas production had increased from about seven billion cubic feet to eight billion cubic feet.

Speaking on Nigeria’s gas potential, Verheijen said the country had more than 200 trillion cubic feet of proven gas reserves, but stressed that the availability of natural resources alone could not guarantee economic prosperity.

“A country can sit on enormous natural wealth and fail to turn it into energy to power industry, industries that create jobs and jobs that help us grow incomes.

“What turns resources into prosperity is investment, consistent investment that responds to predictable incentives and a stable environment,” she said.

She said Tinubu had given his administration a clear mandate since assuming office in 2023 to identify and address the factors preventing investment from matching Nigeria’s economic potential.

“When President Bola Tinubu assumed office in 2023, he gave us a very clear mandate: understand why investment has not moved at the pace of Nigeria’s potential and fix it,” she said.

Verheijen explained that gas remained central to the administration’s reform agenda because of its importance to electricity generation, manufacturing, transportation, fertiliser production and cleaner household cooking.

“Gas has been a priority within that reform agenda because Nigeria is, as you all know, even more gas-rich than it is oil-rich, and the gas is arguably the most important physical resource for industrialisation,” she added.

She further disclosed that Nigeria had recorded four final investment decisions on gas projects in less than two years, including the Ima project in September 2026. She also noted that indigenous producers were playing an increasingly significant role in the country’s gas supply.

On Africa’s energy transition, Verheijen said countries on the continent must balance environmental sustainability with energy security, industrial development and job creation.

“For Africa, the energy transition must mean transformation, molecules converted into megawatts, fertilizer, petrochemicals, cleaner mobility, manufacturing, jobs and exports,” she said.

She argued that African countries should retain the freedom to determine the pace of their energy transitions based on their development priorities and economic circumstances.

“The energy transition must also mean agency. Africa is right to decide for itself how fast it decarbonises, rather than having those choices made for us by others. It is about affirming our right to be the authors of our own energy transition,” she said.

Verheijen also stressed the importance of measuring and reducing methane emissions while ensuring that communities hosting gas projects benefit meaningfully from the development of the country’s natural resources.