Breaking news:Nigeria Approves ₦185 Billion Debt Payment to Boost Power Sector

(According to Reuters)

Nigeria has approved the release of ₦185 billion (around $128 million) to settle long-standing debts owed to gas producers. This move is aimed at restoring investor confidence in the power sector and improving electricity supply across the country.

The National Economic Council, led by Vice President Kashim Shettima, reached this decision after President Tinubu directed that the gas supply arrears be cleared. These debts have reportedly slowed investment, impacted cash flow, and disrupted gas delivery to power plants.

Minister of State for Petroleum, Ekperikpe Ekpo, stated that the debt will be paid through a “royalty-offset arrangement” and called it a bold move to reform the gas industry and enhance power generation. This aligns with Nigeria’s broader goal to nearly double gas production to 12 billion cubic feet per day by 2030.

Despite being Africa’s most populous country, Nigeria continues to grapple with unreliable electricity supply, a major barrier to business and economic development.