Nigeria’s government releases funds for gas infrastructure

ABUJA, October 1, 2024 – The Nigerian federal government and six companies have signed a contract for the disbursal of around USD 72.75 million to develop the country’s midstream gas infrastructure, Ekperikpe Ekpo, the minister of state petroleum resources (gas), said at the signing ceremony in Abuja on Monday.

The agreement includes the Midstream Downstream Gas Infrastructure Fund (MDGIF) – the government representative – and Asiko Energy Holdings, Femadec Energy, Ibile Oil and Gas Corporation, Nsik Oil and Gas, Rolling Energy and Topline. The six gas infrastructure promoters were chosen according to MDGIF’s Investment Policy Statement and the Petroleum Industry Act of 2021.

Projects funded include an LNG plant, LPG storage facilities and CNG retail projects.

Regarding the significance of the agreement, Ekpo said, “This is a historic day for the Nigerian gas industry as we announce and finalise a partnership between public and private sectors with the goal of transforming the midstream gas value chain.”

He further noted that this was only the first disbursement: “This [disbursement] is not going to be the last. We are going through another round of screening for more investors to get into the line … For those who did not make up the first six, you will make up the second one.”

The funding comes as a part of the government’s plan to transition Nigeria’s economy away from crude oil towards one driven by natural gas.

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