The Federal Government says it has settled more than N100 billion in longstanding gas debts since January 2026 as part of efforts to strengthen Nigeria's gas-to-power value chain and improve electricity supply. The Special Adviser to the President on Energy, Oil and Gas, Olu Arowolo Verheijen, disclosed this in her keynote address at the Africa Interviews Sustainability Forum 2026 in Lagos on Wednesday. Punch, the Guardian and Daily Post reported the announcement.
Why does the government say it cleared the debts?
Verheijen said the settlement is part of the Presidential Power Sector Financial Reforms Programme, which is addressing financial obligations in the power sector. Chronic payment arrears to gas suppliers have been a recurring brake on generation, because suppliers cut deliveries to generation companies when invoices go unpaid. Clearing the debts, the government argues, restores supplier confidence and keeps gas flowing to power plants.
What other progress did the government claim?
Verheijen disclosed that Nigeria has recorded four gas final investment decisions in less than two years, including the Ima project in September 2026. She added that average daily gas production has risen from about seven billion cubic feet to eight billion cubic feet, and that indigenous producers now play an increasingly significant role in domestic supply. The government also pointed to import duty waivers and zero-rated VAT on LPG and gas cylinders to encourage cleaner household cooking.
What does Nigeria's gas position look like?
Nigeria holds more than 200 trillion cubic feet of proven gas reserves, among the largest endowments in Africa. Verheijen, however, stressed that resource abundance alone does not guarantee prosperity, arguing that the country must convert reserves into commercially viable projects that support industries, create jobs and raise incomes. That framing responds to a long-standing criticism that Nigeria's gas wealth has under-delivered relative to its potential.
Does settling N100bn solve the power problem?
It is a meaningful step, but gas debts are only one link in a chain that includes transmission constraints, distribution company liquidity, metering gaps and tariff disputes. Observers will judge the programme by whether generation plants receive steadier gas supply and whether blackouts ease. The Guardian noted that the government is simultaneously pressing states to invest in their power markets as the Electricity Act decentralises responsibility.
FAQ
Q: How much gas debt has the FG settled?
A: More than N100 billion in longstanding gas debts since January 2026, per presidential adviser Olu Verheijen.
Q: Where was this disclosed?
A: At the Africa Interviews Sustainability Forum 2026 in Lagos on Wednesday.
Q: What other figures were given?
A: Four gas final investment decisions in under two years, including the Ima project, and daily gas output up from about 7bcf to 8bcf.
Sources: Punch, The Guardian Nigeria, Daily Post Nigeria , Africa Interviews.
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