The Federal Government has unveiled plans to clear ₦2.7 trillion owed to gas companies by offsetting the debt with royalty credits, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
NUPRC Chief Executive, Gbenga Komolafe, disclosed this on Thursday during a virtual meeting hosted by the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, to mark his second year in office.
Royalties, which are payments made by oil and gas firms to the government for resource extraction, will serve as the basis for the settlement plan. Under the arrangement, companies owed for gas supplied to power plants will have their outstanding amounts reconciled against the royalties they owe the Federal Government.
Komolafe, represented by Dennis Anyanwu, stated that the commission is working with key stakeholders to resolve the legacy debt issue. “Since most of the companies involved are gas producers who pay royalties, discussions are ongoing on how to extinguish the debt through royalty credits,” he explained.
The move is seen as a critical step toward stabilising gas supply for power generation and strengthening investor confidence in Nigeria’s gas sector.
