The Federal Government has released N122 billion to six gas infrastructure companies to improve gas services across the country.
At the Midstream Downstream Gas Infrastructure Fund (MDGIF) agreement signing ceremony in Abuja on Monday, Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, announced this significant investment.
He emphasized that the fund aims to support Nigeria’s transition to a gas-driven economy.
“This is a historic day for Nigeria’s gas industry,” Mr. Ekpo said. “We are forming a partnership between the public and private sectors to transform the midstream gas value chain.”
He noted that this initiative reflects President Bola Tinubu’s commitment to enhancing business relationships between these sectors.
Mr. Ekpo explained that the six chosen companies have met the criteria set out in the MDGIF Investment Policy Statement (MIPS) and the Petroleum Industry Act (PIA) of 2021. “These companies have shown their dedication to providing gas to end users,” he added.
The MDGIF aims to modernize Nigeria’s gas infrastructure, acting as a catalyst for investment and bridging gaps in the gas value chain.
Mr. Ekpo highlighted that these efforts are essential for achieving energy security, industrial growth, and economic prosperity, in line with the decade of gas initiative.
He stressed the importance of collaboration between the government and private sector, saying, “The MDGIF will drive growth in gas processing, transportation, storage, and distribution.” This partnership is vital for Nigeria’s goal of reducing its reliance on crude oil.
Mr. Ekpo emphasized that the selection process for the companies was thorough, focusing on their track records and technical expertise. As the agreements were signed, he urged the companies to deliver timely, transparent, and transformative projects.
“The government will support your efforts with policies that ensure smooth execution,” he promised.
Nicolas Ella, the Permanent Secretary of the ministry, encouraged the investors to stay dedicated to the project. Senate Committee Chairman on Gas, Jaribe Jaribe, assured that the Senate would support the initiative’s implementation.
Oluwole Adama, Executive Director of MDGIF, mentioned that the project would also benefit 20 federal universities by reducing transportation costs for students, lecturers, and staff. “We hope to include more institutions soon,” he added.
Fola Akinnola, Managing Director of FEMADEC Energy, one of the beneficiaries, pledged to ensure the effective and timely execution of the project.
The six companies involved in this initiative are Asiko Energy Holdings Ltd. (AEHL), FEMADEC Energy Ltd., Ibile Oil and Gas Corporation (IOGC), Nsiko Oil and Gas Ltd., Rolling Energy Ltd., and Topline Ltd.
Together, they aim to significantly enhance Nigeria’s gas infrastructure and services, paving the way for a more sustainable energy future.
