Nigeria approves N185bn to settle legacy gas debts

The Nigerian Federal Government, through the National Economic Council (NEC), has approved N185 billion to settle validated legacy debts owed to upstream gas producers. Dr. Ekperikpe Ekpo, the Minister of State for Petroleum Resources (Gas), stated that this move is intended to restore commercial discipline, improve supply reliability to power plants, and rebuild investor confidence within the gas sector.

Regarding infrastructure, the OB3 Gas Pipeline is reported as 100 per cent complete, with pre-commissioning finished. The pipeline has a capacity of two billion cubic feet of gas daily (BCF/D) and is expected to unlock over 500 million standard cubic feet per day (MMscf/D) of additional domestic supply. Additionally, the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline is approximately 95 per cent complete.

The Midstream and Downstream Gas Infrastructure Fund (MDGIF) has attracted N1.6 trillion in private investment against N671 billion in public funding, covering 31 projects and 205 assets. The government is targeting $30 billion in gas investment by 2030. Other initiatives include expanding Compressed Natural Gas (CNG) vehicle conversions—which have grown from 11,000 in 2023 to over 120,000—and providing Liquefied Petroleum Gas (LPG) access to five million households by 2030.