FG Okays N122bn Investment for Local Gas Infrastructure Development

By Adedapo Adesanya

The federal government, 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, Mr Ekperikpe Ekpo, made this announcement at an event held at the NNPC Towers Abuja.

He described it as a breakthrough in Nigeria’s gas revolution and “a testament to the government’s commitment to harnessing the country’s gas resources for socio-economic growth.”

The six beneficiary companies – Asiko Energy Holdings Limited (AEHL), FEMADEC Energy Limited, Ibile Oil and Gas Corporation (IOGC), Nsik Oil and Gas Limited, Rolling Energy Limited, and Topline Limited – were carefully selected based on their track record of excellence and commitment to supporting Nigeria’s gas revolution.

“This partnership between the public and private sectors will transform Nigeria’s gas industry, accelerating our journey towards energy security, industrial growth, and economic prosperity,” said Mr Ekpo.

The Minister commended President Bola Tinubu’s efforts to foster business relationships and collaboration to achieve Nigeria’s energy security objectives. He noted that the selection process was rigorous, with each company chosen for its exceptional performance and dedication to Nigeria’s gas development.

“The MDGIF is a catalyst for investment and bridging gaps in the gas value chain by ensuring the financing and delivery of critical projects,” Ekpo explained. “We urge the beneficiaries to utilize these funds judiciously, maintaining the same zeal and dedication that earned them selection as the first batch of MDGIF beneficiaries.”

Mr Ekpo added that additional batches of beneficiaries will be selected in subsequent rounds.

He emphasized that the MDGIF investment aligns with the goals of the Decade of Gas Initiative, aimed at harnessing Nigeria’s gas resources for socio-economic growth.

Present at the event were the Chairman of the Senate Committee on Gas, Mr Jarigbe Agom Jarigbe, Permanent Secretary, Ministry of Petroleum Resources, Mr Nicholas Agbo Ella, Executive Director, MDGIF, Mr Oluwole Adama, Secretary and Members of the MDGIF Governing Council, CEOs of the beneficiary companies, top officials of the Nigerian Midstream and Downstream Petroleum Regulatory Agency (NMDPRA), among others.