Nigeria approved $128 million in payment to settle longstanding debts owed to gas producers that supply power plants, in a move to improve electricity supply.
The arrears had stifled investment into the energy sector, and the settlement aims to restore confidence in the market, Nigeria’s minister of state for petroleum said.
Nearly half of the country’s 220 million people lack access to grid electricity, one of the biggest energy gaps in the world. Technical inefficiencies, vandalism, and ageing infrastructure are among the challenges faced by the sector.
The new debt repayment is part of a push by Abuja to nearly double gas production from around 7 billion cubic feet per day at present to 12 billion cubic feet per day by 2030.