Financial Energy Review
The Federal Government has disbursed N122 billion to six gas infrastructure companies to revamp Nigeria’s midstream gas value chain. This initiative is part of the government’s commitment to enhancing the country’s gas infrastructure and moving towards a gas-driven economy.
The 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 held in Abuja. Speaking at the event, Mr. Ekpo emphasized the importance of the fund in driving investments in gas infrastructure and fostering partnerships between the public and private sectors.
“This is a historic day for the Nigerian gas industry as we finalize a partnership between public and private sectors aimed at transforming the midstream gas value chain. This partnership aligns with President Bola Tinubu’s vision to strengthen business relationships and drive economic growth through gas development,” Mr. Ekpo said.
The MDGIF has entered agreements with six business entities that have met the requirements under the Petroleum Industry Act (PIA) 2021. These companies are expected to play a pivotal role in advancing Nigeria’s gas infrastructure.
“The selected companies have demonstrated their ability to provide gas to end users, and today marks a significant milestone in the government’s strategy to modernize Nigeria’s gas infrastructure. The MDGIF has been designed as a catalyst for investment in gas processing, transportation, storage, and distribution,” he added.
The companies selected for the project are Asiko Energy Holdings Ltd., FEMADEC Energy Ltd., Ibile Oil and Gas Corporation, Nsiko Oil and Gas Ltd., Rolling Energy Ltd., and Topline Ltd. Each was chosen for their technical expertise, commitment to Nigeria’s gas revolution, and track record of excellence.
In his remarks, Mr. Ekpo urged the companies to focus on delivering timely, transparent, and transformational projects, noting that the government would continue to support their efforts through favorable policy frameworks.
Ambassador Nicolas Ella, Permanent Secretary of the Ministry, encouraged the investors to remain diligent in executing the projects, while Senator Jaribe Jaribe, Chairman of the Senate Committee on Gas, reaffirmed the Senate’s support for the initiative.
Oluwole Adama, Executive Director of MDGIF, also highlighted the project’s benefits, including the provision of transportation for Nigerian students and staff across 20 federal universities, with plans to expand to more institutions.
Fola Akinnola, Managing Director of FEMADEC Energy Ltd., assured that the project would be executed efficiently and delivered on time.
The collaboration between the government and private investors marks a significant step in Nigeria’s ambition to transition from a crude oil-dependent economy to one driven by natural gas, enhancing energy security, industrial growth, and economic prosperity.
