The Federal Government has disbursed N122 billion to six gas infrastructure companies as part of its strategy to overhaul the country’s midstream gas value chain, signaling a significant public-private sector collaboration aimed at transforming the nation’s energy sector.
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, made the announcement during the Midstream Downstream Gas Infrastructure Fund (MDGIF) and Promoters Agreement Signing Ceremony in Abuja on Monday.
The funding is designed to accelerate Nigeria’s transition to a gas-driven economy, a key element of President Bola Tinubu’s energy policy agenda.
“This marks a historic day for the Nigerian gas industry as we formalize partnerships between public and private sectors to reshape the midstream gas landscape,” Ekpo said. “President Tinubu is committed to fostering strong business relationships to achieve this transformation.”
Under the agreements, six carefully selected gas infrastructure companies will receive government equity participation to execute projects under the MDGIF.
The companies—Asiko Energy Holdings Ltd., FEMADEC Energy Ltd., Ibile Oil and Gas Corporation, Nsiko Oil and Gas Ltd., Rolling Energy Ltd., and Topline Ltd.—were chosen based on their compliance with the MDGIF Investment Policy Statement and the Petroleum Industry Act (PIA) of 2021.
“These companies have demonstrated expertise and dedication in advancing Nigeria’s gas infrastructure,” Ekpo added, noting the rigorous selection process based on track records of technical excellence and commitment to the country’s gas revolution.
The MDGIF has positioned itself as a critical vehicle for modernizing Nigeria’s gas infrastructure, serving as a catalyst for investments across gas processing, transportation, storage, and distribution.
The initiative aligns with Nigeria’s “Decade of Gas” strategy, aimed at transitioning the economy from crude oil dependency to natural gas.
“These projects will accelerate our progress towards energy security, industrial growth, and economic prosperity,” Ekpo said, emphasizing the government’s commitment to supporting the private sector through favorable policy frameworks.
The minister stressed that the partnership between the government and private sector is key to Nigeria’s broader energy ambitions.
“Together, we will build sustainable energy infrastructure that benefits both the economy and society for generations.”
Permanent Secretary of the Ministry, Nicolas Ella urged investors to execute the projects with diligence, while Chairman of the Senate Committee on Gas, reiterated legislative support to ensure strong partnerships in implementing the initiative.
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Executive Director of MDGIF, Oluwole Adama highlighted that the project includes spreading gas infrastructure across 20 federal universities, aiming to alleviate transportation costs for students and staff.
“We hope to expand this initiative to more institutions as soon as possible,” he added.
Fola Akinnola, Managing Director of FEMADEC Energy, one of the companies awarded a contract, pledged to deliver the project efficiently and on schedule, emphasizing the importance of timely and transparent execution.
This initiative signals Nigeria’s intent to harness its vast natural gas resources to drive economic growth and reduce its dependency on crude oil, while fostering sustainable energy infrastructure through targeted public-private collaborations.
Source:Global Financial Digest
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