Gas Transformation in Nigeria: Federal Government Injects N122 Billion into Midstream Gas Infrastructure

In a significant development for Nigeria’s energy landscape, the Federal Government has released N122 billion to six gas infrastructure companies. The funds are aimed at transforming the midstream gas value chain across the country. The Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, made the announcement at the Midstream Downstream Gas Infrastructure Fund (MDGIF) promoters agreement signing ceremony in Abuja on Monday.

This historic partnership between the public and private sectors marks a major milestone in Nigeria’s gas industry. The initiative is designed to bridge the gaps in the gas value chain by ensuring the financing and delivery of critical projects. The MDGIF is committed to supporting Nigeria’s transition from a crude oil-dependent economy to one driven by natural gas and its derivatives.

The promoters were carefully chosen for their track record of excellence, technical expertise, and commitment to supporting Nigeria’s gas revolution. The selection process was rigorous, and the government is fully committed to supporting the investors through policy frameworks that enable smooth execution.

The project is also expected to alleviate the cost of transportation for Nigerian students, lecturers, and administrative staff at 20 Federal Universities. The Ministry’s Permanent Secretary, Amb. Nicolas Ella, and Senate Committee Chairman on Gas, Sen. Jaribe Jaribe, have all expressed their support for the initiative.

Fola Akinnola, Managing Director of FEMADEC Energy, a beneficiary of the project, vowed to ensure its effective execution and timely delivery. The six companies involved in the project are Asiko Energy Holdings Ltd., AEHL, FEMADEC Energy Ltd., Ibile Oil and Gas Corporation, IOGC, Nsiko Oil and Gas Ltd., and Topline Ltd.

According to Ekpo, “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 MDGIF is poised to fuel growth in gas processing, transportation, storage, and distribution infrastructure, ultimately contributing to energy security, industrial growth, and economic prosperity.