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Nigeria Targets $575 Billion Gas Investment with New Infrastructure Fund

Inauguration of Midstream and Downstream Gas Infrastructure Fund Council Paves Way for Gas Sector Growth

Abuja, Nigeria – March 9, 2024 – The Nigerian government has taken a significant step towards boosting its gas sector with the inauguration of the governing council for the Midstream and Downstream Gas Infrastructure Fund (MDGIF). This initiative aims to attract a staggering $575 billion in investments, propelling the nation’s economic diversification and sustainable development.

MDGIF: A Catalyst for Gas Sector Transformation

The MDGIF is a government-backed fund specifically designed to finance critical infrastructure projects across the midstream (transportation and processing) and downstream (utilization) segments of Nigeria’s natural gas industry. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) manages the fund, with the governing council led by the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo.

Unlocking Gas Potential for Economic Prosperity

Minister Ekpo emphasized the MDGIF’s role beyond just a financial tool. He described it as a “vehicle for progress, a conduit for prosperity, and a catalyst for sustainable development.” The anticipated benefits include:

  • Increased investment: Attracting $575 billion in investment will significantly develop Nigeria’s gas sector.
  • Job creation: The establishment and operation of new infrastructure projects will create substantial employment opportunities.
  • Enhanced energy security: A robust gas sector will ensure Nigeria’s energy independence.
  • Lower energy prices: Improved gas infrastructure is expected to lead to a reduction in the prices of Liquefied Petroleum Gas (LPG) and Compressed Natural Gas (CNG), especially benefiting low-income earners.

Collaboration is Key

The Minister called for domestic and international stakeholders to collaborate in line with the recently signed executive orders on petroleum sector reform. This collaborative effort will be crucial in unlocking the vast potential of Nigeria’s gas reserves and propelling the nation towards economic prosperity.

Funding the MDGIF

The MDGIF will be financed through a combination of sources:

  • A levy on the wholesale price of petroleum products and natural gas sold in Nigeria.
  • Grants and donations from international organizations and other institutions.
  • Interest earned on the fund’s balance.
  • Income from any equity investments made by the fund.

The Future of Nigerian Gas

The inauguration of the MDGIF council marks a pivotal moment for Nigeria’s gas sector. With a clear vision, strategic investment, and collaborative efforts, this initiative has the potential to transform the nation’s energy landscape and drive sustainable economic growth.

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