Legacy Debts: FG Plans Settlement of Outstanding Gas Obligations
The Federal Government (FG) says it plans to settle all outstanding debts owed to gas producers, including long-standing legacy debts. Mr Abel Nse, Senior Technical Adviser to the Minister of Petroleum Resources (Gas), disclosed this during a panel session organised by Sahara Group on Friday in Lagos.
The event, with the theme, “Harnessing Gas for Africa’s Sustainable Future”, aimed to foster dialogue around the continent’s energy needs. Nse stated that President Bola Tinubu had directed relevant ministries and agencies to prioritise the resolution of the debt issue.
“The Federal Government is committed to gradually offsetting the outstanding debts.
“Additionally, we are addressing critical areas such as gas pricing, gas flare penalties, legacy debt, gas infrastructure, supply receivables, and LPG availability, to encourage upstream investment and drive sectoral progress,” Nse said.
He emphasised that the government was working diligently to promote gas utilisation as part of its broader mandate to stimulate domestic commerce and industrialisation.
“It’s a wake-up call for Nigeria to optimise gas resources effectively. Gas has the potential to transform the sector and drive progress,” he added.
On the issue of gas flaring, Nse noted that no upstream operator wanted to tinker with the low incentive costs associated with gas flaring penalties.
“Currently, gas flaring in Nigeria has dropped to less than one per cent, a notable achievement. However, the government cannot finance projects that are not bankable,” he said.
Mrs Ijeoma Isichei, Head of Business Development (Gas) at Sahara Group, described gas as a sustainable and effective bridge fuel.
She emphasised that gas utilisation promotes industrialisation, job creation, and economic growth, while improving access to energy for underserved populations.
Similarly, Mariah Lucciana-Gabriel, Head of Integrated Gas Ventures at Asharami Energy, echoed these sentiments.
She highlighted gas as a cleaner, sustainable energy source and noted that Nigeria possesses commercial volumes of gas capable of supporting industrial development.
“We have enough gas to support Nigeria’s energy transition. It’s crucial that we remain focused to develop an optimal energy mix for the future,” Lucciana-Gabriel said. She also stressed the importance of Nigeria tailoring its energy solutions to local realities.
Also, Mr Mobolaji Sumonu, Lead, Upstream at Fidelity Bank Plc, raised concerns about the limited investments in the gas sector. He pointed out that many gas-related projects were not bankable, making it difficult for financial institutions to support them.
“To attract funding, projects must be viable. Insecurity, poor infrastructure, and lack of financing remain key challenges to gas development,” Sumonu noted. Mr Adeola Yusuf, Lead at Platform Africa, expressed concerns about the strained relationship between operators and the media.
He called for greater mutual understanding and uncensored collaboration. Yusuf also criticised the government’s slow progress in addressing gas flaring and ensuring domestic access to gas. “It’s alarming that about 80 per cent of Nigerian women still lack access to domestic gas.
“The government must take gas flaring seriously and impose stricter penalties to avoid losing trillions of Naira in wasted resources,” he said UBA Jumps by 10% to N1.625 Trillion on Sharp Rally.
