The Nigerian Government has paid more than N100 billion in outstanding gas debts since January 2026 as part of efforts to improve gas supply to power plants and increase electricity generation across the country.
Presidential energy adviser, Olu Verheijen, disclosed this at the Africa Interviews Sustainability Forum in Lagos, saying the payments were made under the Presidential Power Sector Financial Reforms Programme.
Verheijen also revealed that Nigeria’s average daily gas production had risen from about seven billion cubic feet to eight billion cubic feet.
She added that four gas projects had reached final investment decisions in less than two years, indicating progress in efforts to attract investment into gas production and infrastructure.
The settlement of outstanding gas debts addresses a longstanding financial challenge in Nigeria’s electricity sector, where delayed payments have strained relationships between gas suppliers and power generation companies.
Gas-fired power plants depend on consistent fuel supplies to operate, but unpaid obligations have historically undermined the commercial arrangements needed to maintain reliable deliveries to generating companies.
The government’s payments are part of broader efforts to restore confidence across the gas-to-power value chain, where financial challenges involving suppliers, generation companies and other market participants have contributed to recurring supply constraints.
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However, increased gas production and debt repayment alone may not guarantee improved electricity supply to households and businesses.
Gas must be transported through functional infrastructure to power plants, generating facilities must operate efficiently, and the transmission network must have sufficient capacity to deliver the electricity produced to consumers.
Nigeria’s power sector continues to face interconnected challenges involving gas supply, generation capacity, transmission constraints and financial shortfalls.
Sustaining the reported improvements will therefore require continued investment in gas infrastructure, timely payments and reforms to address structural weaknesses across the electricity market.
The impact of the government’s intervention will ultimately depend on whether the debt settlement and increased gas production translate into sustained improvements in electricity generation and supply to homes and businesses.
