MDGIF Mobilises N1.6tn Private Capital for 31 Gas Projects Nationwide - THISDAYLIVE

The Midstream and Downstream Gas Infrastructure Fund (MDGIF) has leveraged N671 billion of public capital to attract N1.6 trillion in private-sector investment into 31 gas infrastructure projects across Nigeria, its Executive Director, Oluwole Adama, has said.

Adama, who was represented by the fund’s Director, Strategy, Research and Deal Origination, Elvis Duruji, disclosed this at the 2026 annual conference of the Association of Energy Correspondents of Nigeria (AECAF) in Abuja.

Adama said the investments covered 205 infrastructure assets across the country and, when fully operational, were expected to deliver about 475 million standard cubic feet of gas daily to the domestic market.

The MDGIF boss said 127 of the projects had commenced, while 10 had already been commissioned, stressing that the fund was established to use public resources to reduce risks and make projects that might otherwise struggle to secure financing bankable.

“We’ve been able to use about N671 billion to capitalise, attract capital of N1.6 trillion. So this is actually the whole objective of the PIA and that is what we’re doing. So the multiplier is approximately 2.4 times of capital,” he said.

Adama said the fund had deliberately moved beyond conventional public-sector financing by using its interventions to attract additional private investors into the gas infrastructure space. He explained that the projects, if completed, could increase domestic gas supply by about 25 per cent based on current domestic production of approximately 1.9 billion scf per day.

The MDGIF chief also disclosed that the fund had partnered four flare-out awardees whose projects could monetise 444 million scf of gas daily that would otherwise have been flared, while potentially eliminating about 2,845 metric tonnes of emissions per day.

He said the fund had partnered 30 unincorporated joint ventures and an incorporated equipment leasing company, covering 20 CNG mother stations, more than 80 CNG daughter stations and another 75 daughter stations through the leasing company.

Among the projects, he identified a 5 million scf mini-LNG plant being developed by Topline Limited in Delta State as Nigeria’s first indigenous mini-LNG project.

According to him, the project spent three years seeking financing before the MDGIF equity intervention helped unlock an InfraCredit guarantee, with commissioning expected within two to three months.

Adama also identified high financing costs, inadequate infrastructure, regulatory uncertainty and technical and commercial risks as some of the major factors constraining investment in the midstream gas sector.

At the conference, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Oritsemeyiwa Eyesan, reiterated that the commission had approved Field Development Plans (FDPs) representing more than $57 billion in investment since 2024.

Eyesan, who was represented by the Director, Surface Development, Joseph Ogunsola, added that 22 major offshore projects expected between 2026 and 2030 had estimated investment potential of between $30 billion and $50 billion.

She said Nigeria had averaged about 1.68 million barrels per day of crude oil and condensate in August 2026, with crude production meeting the country’s OPEC quota for the fourth consecutive month.

She said the immediate priority was to convert approved projects and investment commitments into actual production by bringing viable shut-in volumes back on stream, reducing production losses and ensuring operators executed credible work programmes.

“Investors need to understand the rules and the timelines before committing long-term capital. This is why regulatory predictability and speed remain important to us,” she said.

Eyesan said the regulator was also seeking to reduce avoidable delays by staying closer to projects, identifying bottlenecks early and holding operators accountable for their commitments.

Meanwhile, the National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, called for an open and competitive downstream petroleum market, arguing that Nigeria should not allow a single company to control petroleum product supply.

Gillis-Harry, while acknowledging the investment by Dangote Petroleum Refinery, said other refiners and product suppliers should also be allowed to participate in the market.

He cited the planned 25,000 barrels-per-day Azikel Refinery in Bayelsa as one of the emerging projects that could contribute to domestic refining capacity. He argued that competition among refiners and suppliers would support market-based pricing and improve consumer access to petroleum products.

Gillis-Harry also disclosed that PETROAN had developed a Petroleum Quality Assurance and Quality Control and Price Intelligence System to monitor product volumes, quality, sources and landing costs.

The system, he said, would strengthen transparency in the downstream sector and support accurate dispensing at filling stations.

Also speaking, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said Nigeria’s energy transition must take into account the country’s development needs, with natural gas playing a central role in power generation, manufacturing, fertiliser production, petrochemicals and transportation.

Ekpo, who was represented by his Special Adviser, Technical, Abel Nsa, said millions of Nigerians still required reliable electricity and cleaner cooking fuels, while industries needed affordable and dependable energy.

He said the government was relying on initiatives such as the Decade of Gas, as well as projects including the Ajaokuta-Kaduna-Kano and OB3 pipelines, gas processing facilities and LNG infrastructure, to expand domestic gas utilisation.

The minister, however, acknowledged that infrastructure constraints, insecurity, operational inefficiencies, lengthy contracting processes and regulatory bottlenecks continued to affect project economics.

He said the Petroleum Industry Act (PIA) had provided a framework for improving the investment environment but stressed that legislation alone was insufficient without consistent implementation and efficient project execution.

In his remarks, AECAF Chairman, John Ofikhenua, said Nigeria needed stable policies, improved security and consistent implementation of the PIA to sustain investor confidence in the petroleum industry.

He said global developments, including the shale boom, the COVID-19 pandemic and the energy transition, had affected investment flows into the sector, but recent developments had again highlighted the strategic importance of hydrocarbons to global energy security.

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