Gas producers in Nigeria have continued supplying fuel to power plants even as unpaid debts from the sector pile up to about ₦2.7 trillion.

Fresh data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) shows that between January and July 2025, power firms received 179.79 billion standard cubic feet of gas—worth roughly ₦607 billion. Daily deliveries rose slightly in July, averaging 862.86 million standard cubic feet per day compared to 833.86 mmscf/d in June.

Thermal power plants remain the biggest consumers of domestic gas, but many of them are still owing billions. One of the largest plants alone reportedly owes an international oil company more than ₦500 billion. The generation companies insist they cannot settle these debts until the Federal Government pays the over ₦5 trillion owed to them.

Regulators are now exploring ways to resolve the crisis. The NUPRC has proposed using gas royalty credits—fees that gas companies normally pay to government—to offset part of the outstanding debt. According to NUPRC chief executive Gbenga Komolafe, discussions are ongoing to implement this without disrupting government revenue.

Industry experts, however, warn that the situation highlights a deeper contradiction: despite Nigeria’s vast gas reserves of more than 200 trillion cubic feet, the country still struggles to supply its own power plants. Former power minister Barth Nnaji described this as a “national paradox,” noting that regulated gas prices are set below market realities, worsening liquidity challenges in the electricity sector.

The Federal Government had earlier promised to clear the legacy debts but gas producers say the pledges remain unfulfilled. For now, they continue to supply fuel to power stations, keeping electricity generation alive while waiting for a long-term solution.