The government just approved paying back 185 billion naira to gas companies that have been waiting forever to get their money, and Vice President Kashim Shettima signed off on the whole thing through the National Economic Council. Gas minister Ekperikpe Ekpo said the debt settlement uses a royalty-offset deal and should get suppliers back on board after years of sketchy payment history basically killed their confidence. The outstanding bills apparently choked cash flow for producers and made them pump less gas into power stations, which helped tank electricity supply across the country.
Ekpo thinks clearing the arrears will restart upstream drilling and exploration while pushing gas output closer to the 12 billion cubic feet per day target by 2030. Ed Ubong from the Decade of Gas office said the move could revive stalled projects and pull in fresh investment from local and international players who had been sitting on the sidelines.
Ekpo thinks clearing the arrears will restart upstream drilling and exploration while pushing gas output closer to the 12 billion cubic feet per day target by 2030. Ed Ubong from the Decade of Gas office said the move could revive stalled projects and pull in fresh investment from local and international players who had been sitting on the sidelines.
