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The Federal Government has officially inaugurated the Governing Council of the Midstream and Downstream Gas Infrastructure Fund (MDGIF) with a target to attract over $575 billion in investments to boost the Nigerian gas sector. The MDGIF, established by President Bola Tinubu, focuses on financing infrastructure projects to enhance the transportation, processing, and utilization of natural gas in Nigeria.
Chaired by Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, the seven-member council will oversee the activities of the MDGIF, managed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority. The primary objectives include expanding midstream and downstream gas infrastructure to strengthen the gas market in Nigeria and foster economic development.
Addressing the council during the inauguration meeting in Abuja, Minister Ekpo emphasized the ambitious goals of the MDGIF, highlighting its role as more than just a financial instrument. He expressed the government’s commitment to creating an environment conducive to private sector participation and international collaboration.
Ekpo urged collaboration from domestic and international stakeholders in alignment with recently signed executive orders on petroleum sector reform. The MDGIF, funded through a small levy on petroleum products and natural gas, aims to reduce prices of LPG and CNG, particularly benefiting low-income earners.
Ahmed Farouk, Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority and a council member, assured the minister of the NMDPRA’s support, pledging the team’s dedication to achieving the council’s goals.
The MDGIF is expected to generate funds through levies on petroleum products, grants, donations, and income from equity investments, contributing to the sustainable development of Nigeria’s gas sector.
