BUSINESS
FG Clears N100bn Gas Debts, Moves to Boost Electricity Supply
The Federal Government has settled more than N100 billion in outstanding 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 Oil and Gas, Olu Verheijen, disclosed this on Wednesday while delivering her keynote address at the Africa Interviews Sustainability Forum 2026 in Lagos.
She said the payments were made under the Tinubu administration’s Presidential Power Sector Financial Reforms Programme, aimed at addressing financial challenges in the electricity sector and improving the reliability of gas supply to power generation companies.
Verheijen also highlighted measures introduced since 2023 to promote the use of liquefied petroleum gas (LPG) for domestic cooking, including import duty waivers and zero-rated Value Added Tax on LPG and gas cylinders.
According to her, the measures are designed to encourage cleaner cooking practices and reduce reliance on firewood.
“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 by 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 in 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 the country’s gas potential, Verheijen said Nigeria had more than 200 trillion cubic feet of proven gas reserves but warned that abundant natural resources alone would 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,” she said.
She stressed that sustained investment, supported by predictable incentives and a stable operating environment, was essential to translating Nigeria’s natural resources into economic benefits.
Verheijen said Tinubu had given his administration a clear mandate upon assuming office in 2023 to identify and address the factors preventing investment from matching the country’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 stated.
She described gas as a central pillar of the administration’s reform agenda, citing its importance to electricity generation, manufacturing, transportation, fertiliser production and cleaner 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.
The presidential adviser further disclosed that the country had recorded four gas project final investment decisions in less than two years, including the Ima project in September 2026. She also noted the growing contribution of indigenous producers to domestic gas supply.
On Africa’s energy transition, Verheijen said the continent must balance environmental sustainability with energy security, industrial development and job creation.
She argued that Africa’s energy transition should focus on converting its natural resources into electricity, fertiliser, petrochemicals, cleaner transportation, manufacturing opportunities, jobs and exports.
According to her, African countries should retain the freedom to determine the pace of decarbonisation based on their development needs 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 emphasised the importance of measuring and reducing methane emissions while ensuring that host communities derive meaningful benefits from gas development.