Nigerian Government Approves N122bn Investment For Gas Infrastructure Development

The Federal Government of Nigeria through the Midstream and Downstream Gas Infrastructure Fund (MDGIF), has approved the investment of N122 billion in six indigenous companies, marking a significant milestone in Nigeria’s quest for energy security and gas infrastructure development.

The Minister of State Petroleum Resources Gas and Chairman of the MDGIF Governing Council, Ekperikpe Ekpo in his opening address at the Promoters Agreement Signing Ceremony held in Abuja, said it was a historic day for the Nigerian gas industry as they announce and finalize a partnership between the public and private sectors with the goal of transforming the midstream gas value chain.

The Minister said “the event is a reflection of the efforts and enthusiasm of President Bola Ahmed Tinubu to improve and foster business relationships between the public and private sectors which also demonstrates the critical role that collaborations play in accomplishing the Country’s energy objectives as they work to improve Nigeria’s gas infrastructure”.

Ekpo said “Today is a significant milestone as we formally enter into agreements with six business entities that have been screened to obtain government equity participation under the Midstream Downstream Gas Infrastructure Fund (MDGIF). These promoters, who have been carefully chosen in compliance with the MDGIF Investment Policy Statement (MIPS) and the Petroleum Industry Act (PIA) 2021, deserve our congratulations since they have demonstrated their ability and commitment in supporting us to provide gas to end users”.

Speaking further, the Gas Minister said the Midstream and Downstream Gas Infrastructure Fund (MDGIF) stands at the forefront of the strategy to modernize Nigeria’s gas infrastructure. It has been designed as a catalyst for investment, aimed at bridging gaps in the gas value chain by ensuring the financing and delivery of critical projects. He said these initiatives will accelerate the journey towards energy security, industrial growth, and economic prosperity, in alignment with the goals of the Decade of Gas Initiative.

He said “by bringing together government’s efforts and private sector expertise, the MDGIF is positioned to fuel growth in gas processing, transportation, storage, and distribution infrastructure”.

This collaboration is essential to achieving our target of transitioning from a crude oil-dependent economy to one driven by natural gas and its derivatives.

The six companies drawn from different geopolitical zones of the country are;
Asiko Energy Holdings Limited (AEHL),
FEMADEC Energy Limited, Ibile Oil and Gas Corporation (IOGC), Nsik Oil and Gas Limited, Rolling Energy Limited, Topline Limited.

Ekperikpe Ekpo said the six were carefully selected based on their track record of excellence and commitment to supporting Nigeria’s gas revolution, revealed that it was not going to be the last as they are going through another round of screenings for more investors to get on board, to drive in the aspirations and intentions of President Bola Tinubu to make sure that Nigeria is being driven by gas which is also a cleaner way to safeguard the environment.

Olusola Akintonde