The Federal Government of Nigeria has announced plans to select additional beneficiaries for its initiative aimed at investing in indigenous companies focused on enhancing energy security and developing gas infrastructure. This initiative represents a significant step towards achieving energy security in the country.
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, made the announcement at an event where the government approved the disbursement of ₦122 billion to six indigenous companies. This funding, provided through the Midstream and Downstream Gas Infrastructure Fund (MDGIF), is intended to support the development of midstream and downstream gas infrastructure, aligning with the objectives of President Bola Tinubu’s administration.
Established under the Petroleum Industry Act 2021, the MDGIF was initiated during President Muhammadu Buhari’s administration with the formation of its governing council in August 2022. This initiative aims to address the significant infrastructure deficits that have hampered gas distribution and utilization in Nigeria, particularly in the context of the nation’s ‘Decade of Gas’ and energy transition policies.
According to a statement from the minister’s spokesperson, Louis Ibah, this effort seeks to foster partnerships and collaboration to meet Nigeria’s energy security goals. Ekpo described the initiative as a breakthrough for Nigeria’s gas sector, highlighting the government’s commitment to leveraging the country’s gas resources for socio-economic development.
“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,” he stated.
The MDGIF aims to attract investments and bridge gaps in the gas value chain by financing and facilitating critical projects. Ekpo urged the selected beneficiaries to utilize the funds responsibly, emphasizing the dedication that led to their selection as the first cohort of MDGIF beneficiaries. He confirmed that more beneficiaries would be chosen in subsequent rounds.
The six beneficiary companies—Asiko Energy Holdings Limited, FEMADEC Energy Limited, Ibile Oil and Gas Corporation, Nsik Oil and Gas Limited, Rolling Energy Limited, and Topline Limited—were selected based on their excellent track records and commitment to supporting Nigeria’s gas development.
Senate Committee on Gas Chairman Sen. Jaribe Jaribe assured ongoing legislative support to strengthen the partnership in implementing this initiative. The agreements signed include Joint Operating Agreements, Equity Contribution Agreements, and Joint Venture Account Agreements.
Additionally, MDGIF Executive Director Mr. Oluwole Adama stated that the fund was established to enhance domestic natural gas consumption in Nigeria.
