The Federal Government says the National Economic Council, NEC, has approved N185 billion to settle validated legacy debts owed to upstream gas producers.
The Minister of State for Petroleum Resources, Gas, Ekperikpe Ekpo, said the payment is expected to improve gas supply to power plants, restore commercial discipline across the gas-to-power value chain and strengthen investor confidence in Nigeria’s gas sector.
“This is not merely about settling debt. It is about restoring commercial discipline, improving supply reliability and rebuilding investor confidence,” Ekpo said.
On gas infrastructure, the minister said the Obiafu-Obrikom-Oben Gas Pipeline is 100 per cent complete, with pre-commissioning activities concluded ahead of first gas.
He said the pipeline has a capacity to transport two billion cubic feet of gas per day, Bcf/d, and is expected to unlock more than 500 million standard cubic feet per day, MMscf/d, of additional domestic gas supply.
Ekpo said the Ajaokuta-Kaduna-Kano Gas Pipeline is about 95 per cent complete. He added that the Midstream and Downstream Gas Infrastructure Fund, supported by N671 billion in public funding, has attracted N1.6 trillion in private investment.
According to him, the funding covers 31 projects and 205 infrastructure assets, with the capacity to deliver about 475 MMscf/d of gas to the domestic market.
Ekpo said the Federal Government is targeting about $30 billion in gas investment by 2030 as part of efforts to expand production, infrastructure and domestic utilization.
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He said the number of Compressed Natural Gas, CNG, vehicle conversions has risen from about 11,000 in 2023 to more than 120,000, while the government is targeting at least one million CNG-powered vehicles and up to 1,000 refuelling stations nationwide.
The minister said the government is also targeting access to Liquefied Petroleum Gas, LPG, for five million households by 2030.
He said the distribution of 27,000 free LPG cylinders per state is already underway as part of efforts to expand access to cleaner cooking energy.
Ekpo added that President Bola Tinubu has approved the extension of the National Grassroots LPG Penetration Programme to 2060.
He said the extension would provide a long-term framework for expanding the adoption of cleaner cooking energy across the country.
On gas flaring, Ekpo said 42 companies have been awarded contracts to convert flare gas into energy, feedstock, LPG, CNG and power.
He said the government would sustain regulatory and commercial measures aimed at ending routine gas flaring by 2030.
Ekpo said Nigeria’s gas agenda is focused on increasing production, expanding infrastructure, attracting investment and improving gas supply to the power sector.
He added that the government would also prioritize benefits for gas-producing communities and use Nigeria’s growing role in international energy organizations to advocate increased investment in the sector.
According to him, Nigeria would also promote transparent energy markets, affordable access to energy and a just energy transition.
NAN
