The Federal Government has announced plans to expand its initiative to support indigenous companies focused on energy security and gas infrastructure development. This move marks a crucial step forward in Nigeria’s efforts to enhance its energy security and improve gas distribution networks.
The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, revealed the plans at an event where the government approved N122 billion in funding for six local companies. The fund, made available through the Midstream and Downstream Gas Infrastructure Fund (MDGIF), is designed to promote the development of gas infrastructure in line with the agenda of President Bola Tinubu’s administration.
Established under the Petroleum Industry Act (PIA) of 2021, the MDGIF aims to address Nigeria’s gas infrastructure deficit, a major challenge to the country’s energy distribution and utilisation. The fund’s governing council was inaugurated by the previous administration in August 2022, marking the start of the initiative.
Speaking at the event, Ekpo described the program as a “breakthrough in Nigeria’s gas revolution” and a testament to the government’s commitment to harnessing the nation’s gas resources for economic growth. He emphasised the importance of public-private partnerships in achieving energy security and industrial development.
“This partnership will transform Nigeria’s gas industry, accelerating our journey toward energy security, industrial growth, and economic prosperity,” Ekpo said.
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The minister urged the beneficiaries to use the funds responsibly, commending them for their outstanding performance in the selection process. “The companies selected for this round demonstrated exceptional dedication to Nigeria’s gas development, and future rounds will see more beneficiaries,” he added.
The six selected 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 chosen based on their track records of excellence and commitment to Nigeria’s gas revolution.
The event also saw the signing of three key agreements: Joint Operating Agreements, Equity Contribution Agreements, and Joint Venture Account Agreements, aimed at strengthening partnerships in the gas sector.
Senator Jaribe Jaribe, Chairman of the Senate Committee on Gas, assured that the Senate would continue to support the initiative, fostering collaboration for its successful implementation.
MDGIF Executive Director, Oluwole Adama, highlighted the importance of the fund in boosting domestic natural gas consumption, aligning with Nigeria’s energy transition and ‘Decade of Gas’ policies.
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