Nigeria plans to pay N130bn ($1bn) from the gas fund to partly settle N1.3tn energy debt, with current debt paid in cash and legacy debt settled via future royalties.
Nigeria plans to pay N130 billion ($1 billion) from the gas stabilisation fund to settle part of the N1.3 trillion debt owed to gas companies and power-generating companies (Gencos). The payments will be made in two parts: the current debt will be paid in cash, while the legacy debt will be settled through future royalties and income exchange in the gas sub-sector. The aim is to encourage gas companies to enter into firm supply contracts with power-generating companies for consistent power generation.
May 16, 2024
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