FG Signs N122bn Deal to Boost Nigeria’s Gas Infrastructure
The Federal Government has signed a N122 billion equity participation agreement with six gas infrastructure companies, aimed at transforming the midstream gas value chain across Nigeria.
This was announced by the Minister of State for Petroleum Resources (Gas), Mr Ekperikpe Ekpo, during the signing of the Midstream Downstream Gas Infrastructure Fund (MDGIF) and Promoters Agreement in Abuja on Monday.
According to the News Agency of Nigeria (NAN), the MDGIF entered into this agreement with gas infrastructure promoters to enhance the country’s gas infrastructure. Ekpo highlighted that the fund is dedicated to supporting investors, ensuring that Nigeria’s growth is powered by gas.
Through the Midstream and Downstream Gas Infrastructure Fund (MDGIF), the government signed agreements with six companies: Asiko Energy Holdings Limited (AEHL), FEMADEC Energy Limited, Ibile Oil and Gas Corporation (IOGC), Nsik Oil and Gas Limited, Rolling Energy Limited, and Topline Limited.
At the signing ceremony in Abuja, Ekpo explained that the government, through the MDGIF, is investing N122 billion to support the expansion of gas infrastructure throughout Nigeria.
He said, “Today marks a significant step forward in Nigeria’s gas revolution. I am pleased to announce the Federal Government’s approval of N122 billion for six indigenous companies through the Midstream and Downstream Gas Infrastructure Fund (MDGIF). This groundbreaking investment demonstrates our unwavering commitment to energy security, economic growth, and the development of Nigeria’s gas infrastructure.”
“Today is a significant milestone as we formally enter into agreements with six business entities that have been screened to obtain government equity participation under the MDGIF.”
He further noted that the promoters were carefully chosen based on the MDGIF Investment Policy Statement (MIPS) and the Petroleum Industry Act (PIA) 2021, and commended them for their achievements.
Ekpo stressed that the selection process was rigorous, with each company selected for its proven excellence, technical expertise, and strong commitment to advancing Nigeria’s gas sector revolution.
Senator Jaribe Jaribe, Chairman of the Senate Committee on Gas, assured that the Senate would continue to support fostering a strong partnership to implement this initiative.
Three agreements were signed: Joint Operating Agreements, Equity Contribution Agreements, and Joint Venture Account Agreements.
Meanwhile, MDGIF Executive Director, Mr Oluwole Adama, explained that the Petroleum Industry Act (PIA) established the fund to boost domestic natural gas consumption across Nigeria.
