The Federal Government has revealed that it has paid $120 million out of the $1.3 billion owed to gas firms for gas supply to power plants in Nigeria.
Ed Ubong, the Director of the Decade of Gas Secretariat, shared this information at a session titled ‘From Blueprint to Reality: Navigating Nigeria’s Gas Decade and Balanced Narrative on Energy Transition’ during the 7th Nigeria International Energy Summit (NIES 2024) in Abuja.
Ubong stated that the payment aimed to offset a portion of the debts owed to gas companies, acknowledging that the outstanding gas debts were approximately $1.3 billion as of the previous year.
He expressed satisfaction that the government had taken steps to address this financial obligation by disbursing $120 million between October and January.
In addition to the payment, Ubong highlighted ongoing efforts to establish a framework to address the legacy issues surrounding gas debts, providing a more sustainable solution for the industry.
He also emphasized the importance of building capacity for engineers and technicians in the evolving gas sector.
“The payment and ongoing initiatives underscore the government’s dedication to resolving financial challenges in the gas sector and promoting a more robust and sustainable energy landscape in Nigeria,” he concluded.
