The Nigerian federal government, on Monday, September 30, announced the release of N122 billion to six companies to promote gas projects aimed at increasing the availability of natural gas across the country. The funding, facilitated through the Midstream and Downstream Gas Infrastructure Fund (MDGIF), is part of the government’s broader effort to develop gas infrastructure and reduce environmental pollution.
The six companies benefiting from the investment are Asiko Energy Holdings Limited (AEHL), FEMADEC Energy Limited, Ibile Oil and Gas Corporation (IOGC), Nail Oil and Gas Limited, Rolling Energy Limited, and Topline Limited. The agreements were signed in Abuja during a ceremony attended by top government officials and investors.
Speaking at the event, the Minister of State for Petroleum Resources (Gas), Hon. Ekperikpe Ekpo, emphasized the government’s commitment to expanding the country’s gas infrastructure. “Today, the federal government, through MDGIF, is committing 122 billion Naira into the hands of six investors to help in the dissemination of gas to all sectors of the country,” Ekpo said.
He noted that this disbursement would not be the last, as more companies are currently being screened for future gas development projects. Ekpo described gas as a cleaner energy source that is essential for protecting the environment and urged the benefiting companies to adhere to the terms of their agreements.
The agreements signed include Joint Operating Agreements, Equity Contribution Agreements, and Joint Venture Account Agreements, marking the first such deals since the enactment of the Petroleum Industry Act (PIA) in 2021.
Meanwhile, MDGIF Executive Director, Mr. Oluwole Adama, highlighted the importance of these projects in increasing domestic gas consumption and attracting private investment. He noted that the agreements are designed to reduce gas flaring while supporting investment in midstream and downstream gas infrastructure.
These gas initiatives are part of Nigeria’s strategy to harness its abundant natural gas reserves, promote cleaner energy, and ensure sustainable economic growth. The first phase of projects will soon be underway, with additional investors expected to join in future rounds of funding.
