The Federal Government has settled more than N100 billion in longstanding gas debts since January 2026 as part of a push to strengthen the gas-to-power value chain, according to the Special Adviser to the President on Oil and Gas. Olu Verheijen disclosed the debt settlement on Wednesday at the Africa Interviews Sustainability Forum 2026 in Lagos, stating that the work was carried out under the Presidential Power Sector Financial Reforms Programme introduced by the Tinubu administration.
The government has also introduced measures since 2023 to encourage the use of liquefied petroleum gas for household cooking, including import duty waivers and zero-rated value-added tax on LPG and gas cylinders. Verheijen said the aim was to promote cleaner cooking alternatives and reduce dependence on firewood, noting that a gas-rich nation should not have families relying on outdated fuels.
Nigeria has recorded four final investment decisions in gas projects in less than two years, with average daily gas production rising from approximately seven billion cubic feet to eight billion cubic feet, Verheijen said. The adviser attributed this progress to reforms under President Tinubu that remove investment barriers and unlock Nigeria's gas resources for industrialisation, electricity generation and economic growth. She noted that Nigeria holds more than 200 trillion cubic feet of proven gas reserves but stressed that resource abundance alone does not guarantee prosperity without consistent investment and a stable environment.
Verheijen emphasised that gas remains central to the administration's reform agenda because of its importance to electricity generation, manufacturing, transportation, fertiliser production and cleaner cooking. She disclosed that the Ima gas project was among the four final investment decisions recorded in September 2026, with indigenous producers playing an increasingly significant role in the country's gas supply.
On Africa's energy transition, Verheijen said the continent must prioritise energy security, industrial development and job creation while pursuing environmental sustainability. She argued that African countries must retain the freedom to determine the pace of their energy transitions in line with their development priorities and economic circumstances, rather than having choices made by external parties. The adviser also emphasised the need to measure and mitigate methane emissions and ensure that host communities benefit meaningfully from gas development.
For borrowers and businesses, the debt settlement and improved gas supply could lower electricity costs and reduce power supply constraints that affect manufacturing and operations.