The Federal Government has revealed plans to select more beneficiaries for its initiative aimed at investing in local companies focused on energy security and the development of gas infrastructure.
This initiative marks a major step in Nigeria’s quest for energy security and gas infrastructure growth, according to the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo. He made this announcement during an event where the government approved the disbursement of N122 billion to six indigenous companies.
The funds, provided through the Midstream and Downstream Gas Infrastructure Fund (MDGIF), are meant to support the development of gas infrastructure, in alignment with the goals of President Bola Tinubu’s administration.
The MDGIF was established under the Petroleum Industry Act (PIA) of 2021, with the initial governing council set up by the former government of President Muhammadu Buhari in August 2022, to address the nation’s infrastructure deficits in gas distribution and utilization.
According to a statement by Louis Ibah, the minister’s spokesperson, the initiative aims to strengthen business relationships and collaboration to achieve Nigeria’s energy security goals. Ekpo hailed the program as a significant breakthrough in the country’s gas revolution, underlining the government’s commitment to leveraging gas resources for economic growth.
“This partnership between the public and private sectors will revolutionize Nigeria’s gas industry, fast-tracking our progress towards energy security, industrial growth, and economic prosperity,” Ekpo stated. He urged the selected companies to utilize the funds effectively and hinted that more beneficiaries would be chosen in the coming rounds.
The six beneficiary companies—Asiko Energy Holdings Limited, FEMADEC Energy Limited, Ibile Oil and Gas Corporation, Nsik Oil and Gas Limited, Rolling Energy Limited, and Topline Limited—were selected based on their strong performance and commitment to Nigeria’s gas development.
Senator Jaribe Jaribe, Chairman of the Senate Committee on Gas, assured that the Senate would continue to support the initiative, fostering a strong public-private partnership. Three agreements were signed as part of the initiative: Joint Operating Agreements, Equity Contribution Agreements, and Joint Venture Account Agreements.
MDGIF Executive Director, Oluwole Adama, noted that the Petroleum Industry Act established the fund to boost domestic natural gas consumption in Nigeria.
