$575Bn Investment Being Expected As Federal Government Inaugurates Gas Infrastructure Fund Intervention

Huge investment in the country’s gas sector is being anticipated after the Governing Council of the Midstream and Downstream Gas Infrastructure Fund, was Friday inaugurated.

The Council has the mandate to bring investors with the target of attracting $575bn investments in the Nigerian gas sector.

The MDGIF is a government fund set up to invest in infrastructure projects that will improve transportation and processing (midstream) and utilisation (downstream) of natural gas in Nigeria.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority manages the MDGIF, while the governing council is chaired by the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, who oversees the fund’s activities.

President Bola Tinubu, last year appointed a Governing Council to lead the Midstream and Downstream Gas Infrastructure Fund.

The aim of the MDGIF includes attracting more than $575bn in investments to develop Nigeria’s gas sector; expanding the midstream and downstream gas infrastructure to create a more robust gas market in Nigeria, among others.

Speaking at the inauguration meeting of the council, the Minister of Petroleum, (Gas) told the seven-member council that “the President’s confidence in my ability to chair the MDGIF is not just a personal honour but a clarion call to service for all of us”.

He added, “It reflects the belief that, together, we can harness the vast potential of our nation’s gas resources to drive innovation, create jobs and contribute significantly to the overall development of our beloved country.”

The MDGIF is to get its money from a small levy on the wholesale price of petroleum products and natural gas sold in Nigeria.

It is to also raise funds from grants and donations from international organisations and other institutions, as well as interest earned on the fund’s balance and income from any equity investments it makes.