By Abdulkareem Haruna

Borno State Governor Babagana Zulum has revealed a deep-seated financial friction between the state government and the Nigerian National Petroleum Company Limited (NNPCL) over gas supply invoices, urging the national oil company to agree to a “quantum bond” settlement to clear legacy debts.

The disclosure came during a courtesy visit by the Board Chairman of NNPCL, Ahmadu Musa Kida, alongside top management executives, to the Government House in Maiduguri.

Addressing the delegation, Mr. Zulum detailed how the state was forced to seek a ₦68 billion presidential bailout to cover severe shortfalls in gas supply financing, while pushing for the immediate reconciliation of an outstanding ₦17.8 billion invoice debt owed for liquefied natural gas (LNG) supplies before the company switched off its earlier pledges of supplying gas to the plant on CSR basis.

“However, NNPC should also take note that there is an outstanding payment of ₦17,866,000,000 (17.8 billion naira) in respect of outstanding LNG supplies supply invoices that were supplied before the approval of Mr. President,” he said.

“I want to urge you to please look into the possibility of paying the arrears while the government of Borno State will pursue the payment of the ₦68 billion from the Federal Government of Nigeria, because the previous gas was supplied before the approval of Mr. President.”

The gas supply nightmare
According to Governor Zulum, the state’s energy crisis deepened after NNPCL abruptly altered the original commercial framework for gas delivery under its Corporate Social Responsibility (CSR) initiative without prior warning.

Under the initial agreement, NNPCL was expected to supply gas to local thermal power infrastructure to keep Maiduguri powered following repeated Boko Haram insurgent attacks that destroyed high-voltage transmission towers along the Damaturu-Maiduguri corridor. 
“The initial agreement was that NNPC Limited would provide gas under your corporate social responsibility scheme,” Mr. Zulum explained.

“Somehow along the line, we were told that NNPC will henceforth stop the supply of gas, giving us no warning on the ground. This has been one of our nightmares.”

Faced with a sudden disruption in energy feedstock and a massive funding gap, the governor revealed he appealed directly to the presidency for financial intervention.

“I went to see the President of the Federal Republic of Nigeria, where I pleaded for his intervention to provide the shortfalls needed to augment payments for the gas supply,” Mr. Zulum said.

“The sum of ₦68 billion was approved by the President. So far, two installments have been received, and we shall pursue the payment of the remaining balance.”
 
Demand for quantum bond and debt settlement
Despite securing the ₦68 billion presidential intervention, Mr. Zulum pointed out that a legacy debt of ₦78,866,000 remains unpaid for LNG invoices delivered by NNPCL prior to the president’s approval.
He urged NNPCL management to immediately look into clearing the outstanding debt, advocating for a lump-sum “quantum bond” arrangement rather than piecemeal installments to eliminate administrative delays.
“NNPC should take note that there is an outstanding payment of ₦78,866,000 in respect of outstanding LNG supply invoices that were supplied before the approval of Mr. President,” the governor stated. “I want to urge you to please look into the possibility of paying these arrears while the Borno State Government pursues the payment of the ₦68 billion from the Federal Government.”

“It will be better if we can get this paid in a quantum bond so that the rigor of pursuing this money will not be a problem,” he added.

Long-term energy infrastructure plans
Beyond settling immediate gas accounts, Mr. Zulum pressed NNPCL to expedite long-delayed upgrades to local energy infrastructure. Specifically, he questioned the delay in upgrading the current emergency power plant into a combined-cycle system.

“The equipment for the upgrade has been here for the last two years or more,” Mr. Zulum lamented. “I believe by now it should have been completed. Energy is essential, and energy is a social service. Upgrading the current plant into a combined cycle within the shortest possible time will be a major game changer.”

The governor also advocated for tapping into the Ajaokuta-Kaduna-Kano (AKK) gas pipeline project as a fast-track solution for Borno’s domestic energy needs, suggesting a 500-kilometer spur line from Kano to Maiduguri.

“Taking gas from the Kano axis of the AKK pipeline would serve our domestic needs faster, so that some of us in our lifetime will see the actualization of our dreams,” Mr. Zulum said.

In his response, NNPCL Board Chairman Ahmadu Musa Kida reiterated the company’s transition into a fully commercialized, tax-paying limited liability enterprise accountable to 200 million Nigerians. He promised that the executive management teams for Upstream as well as Gas and Power would engage with the state government to resolve all technical and commercial friction points.

Acknowledging the dramatic shift in local security conditions that previously crippled economic activity in the region, Mr. Kida admitted that fear of attacks had once isolated the state capital, but commended the state government’s ongoing stabilization efforts for restoring operational confidence.

“There was a time when you would not want to fly to Maiduguri because it was said that the airport itself was not safe from the ground,” Mr. Kida stated.

“Now, we have our people who have come to do some kind of reconnaissance. We have our people who live here now, and we have family who will see, Your Excellency, that life has come back to almost the way it used to be.”

Pitching the national oil firm’s willingness to deepen operational footprints in the North-East, the NNPCL board chairman lauded Governor Zulum’s security apparatus, noting that improved safety on the ground enabled federal technical teams and their families to safely relocate to Maiduguri.

“We see the infrastructure, we see the facilities, and more importantly, the security, Your Excellency, that has been in the forefront of everything you have done,” Mr. Kida noted, adding that NNPCL management continues to laud the governor’s “consistent and continuous view on keeping Borno security.”