The Federal Government has cleared over N100bn in outstanding gas debts since January 2026 to strengthen power supply. While Nigeria recorded four gas project final investment decisions in less than two years.
The Federal Government has paid more than N100bn in outstanding gas debts since January 2026, seeking to strengthen fuel supplies for electricity generation.
Presidential Adviser on Oil and Gas, Olu Verheijen, disclosed this on Wednesday during her keynote address at the Africa Interviews Sustainability Forum 2026 in Lagos.
She attributed the payments to the administration’s Presidential Power Sector Financial Reforms Programme, which seeks to address financial challenges across Nigeria’s gas-to-power value chain.
Gas Investment Gains Momentum
Beyond settling outstanding debts, Verheijen highlighted reforms designed to attract capital into Nigeria’s gas industry and expand production for domestic and industrial consumption.
She said Nigeria had secured four final investment decisions (FIDs) for gas projects in less than two years, signalling renewed investor commitment.
Among these projects was the Ima project, which reached its final investment decision in September 2026, according to Verheijen.
Meanwhile, average daily gas production has increased from approximately seven billion cubic feet to eight billion cubic feet, she disclosed.
Nigeria holds more than 200 trillion cubic feet of proven gas reserves, yet Verheijen cautioned that abundant resources alone cannot guarantee economic prosperity.
She stressed that sustained investment requires predictable incentives, a stable operating environment and reforms that remove barriers to commercial development.
According to her, President Bola Tinubu directed his administration to identify and address the constraints preventing investment from matching Nigeria’s economic potential.
Government Promotes Cleaner Cooking
In addition to supporting electricity generation, the government has introduced fiscal incentives to encourage households to adopt liquefied petroleum gas (LPG) for cooking.
Verheijen said the measures, introduced since 2023, include import duty waivers and zero-rated value-added tax provisions covering LPG and gas cylinders.
These incentives aim to make cleaner cooking alternatives more accessible while reducing household dependence on firewood, she explained.
She argued that Nigeria’s substantial gas resources should translate into practical benefits for households, businesses and the wider economy.
Gas Central to Industrialisation
Verheijen described gas as a strategic resource for Nigeria’s industrial development, citing its applications in electricity generation, manufacturing, transportation, fertiliser production and cleaner cooking.
She maintained that unlocking the sector’s potential would require sustained investment capable of converting natural resources into industrial output, employment opportunities and higher incomes.
Consequently, she positioned gas development as a key component of the administration’s broader economic reform agenda.
Africa’s Energy Transition Must Support Development
Addressing the continent’s energy transition, Verheijen urged African countries to balance environmental sustainability with energy security, industrialisation and employment generation.
She argued that African nations should determine their decarbonisation pathways according to their development priorities, economic conditions and energy requirements.
According to her, the transition should convert natural resources into electricity, fertilisers, petrochemicals, cleaner transport, manufacturing capacity, jobs and export earnings.
However, she emphasised that gas development must also incorporate effective methane measurement and emissions reduction measures.
She further stressed the importance of ensuring that host communities receive meaningful benefits from projects developed around their resources.