MDGIF Advocates for Government Support to Bolster Nigeria’s Gas Infrastructure
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is urging sustained government incentives to drive investments in Nigeria’s gas sector. At the recent OTLAfrica Summit, themed “New Energy Order: Updates on Gas, CNG, and LPG,” MDGIF Executive Director Mr. Oluwole Adama highlighted the essential role of government support in enhancing gas processing, transportation, storage, and distribution.
The call for support follows a recent ₦122 billion fund allocation to improve the nation’s gas infrastructure. Mr. Adama stressed that a supportive regulatory framework is critical to attracting private-sector investments in Compressed Natural Gas (CNG), Liquefied Petroleum Gas (LPG), and other key gas areas. “The injection of funds is only a step,” he said. “Consistent policy support and incentives will pave the way for increased private investment, strengthening Nigeria’s domestic gas value chain.”
Mr. Adama also outlined the MDGIF’s vision, which includes financing projects in LNG, CNG, LPG processing, gas transportation and storage, and gas flare capture. He emphasized that all projects funded by MDGIF must align with Nigeria’s National Gas Expansion Program (NGEP) and be economically viable while meeting Sustainable Development Goals (SDGs) and Environmental, Social, and Governance (ESG) standards.
The MDGIF, according to Mr. Adama, is primarily an enabling body, supporting viable projects with strategic backing to attract private-sector investments. He noted that six project promoters have been identified to receive funding, including a 5,000 MT butane storage facility and 20 mobile CNG refueling stations aimed at reducing reliance on traditional fuels.
In addition to domestic funding efforts, the MDGIF is working to secure multilateral and bilateral funding for gas infrastructure projects. A recent 1.5% levy on wholesale petroleum product prices will further bolster these efforts, while income from equity investments and gas flaring penalties will provide additional financial support.
The MDGIF’s transparency and robust governance framework are attracting significant foreign and local interest. Mr. Adama urged private stakeholders to increase their investments, noting that Nigeria’s current gas pipeline network covers less than 10% of the nation’s demand. “Our gas infrastructure will be essential for the next 20 to 30 years as we work towards a sustainable energy future,” he concluded.
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