The Federal Government has announced plans to select more beneficiaries for its initiative aimed at investing in indigenous companies dedicated to energy security and gas infrastructure development. This initiative, which marks a significant step in Nigeria’s pursuit of energy security, is backed by the Midstream and Downstream Gas Infrastructure Fund (MDGIF), a government-backed effort to enhance the country’s gas infrastructure.
At an event where the government approved the disbursement of N122 billion to six indigenous companies, Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, highlighted the importance of this initiative in driving the nation’s energy security. The MDGIF, established under the Petroleum Industry Act 2021, is a major part of the Nigerian government’s strategy to address the country’s infrastructure deficit, especially within the gas distribution and utilization sectors.
Ekpo emphasized that the funding would catalyze business partnerships aimed at fulfilling Nigeria’s energy security goals, adding that it reflects the government’s commitment to unlocking the socio-economic potential of the country’s vast gas resources. This collaboration between the public and private sectors aims to drive industrial growth and economic prosperity, positioning Nigeria’s gas industry for long-term transformation.
The six companies benefiting from the initial funding round include Asiko Energy Holdings Limited, FEMADEC Energy Limited, Ibile Oil and Gas Corporation, Nsik Oil and Gas Limited, Rolling Energy Limited, and Topline Limited. These companies were selected based on their outstanding performance and commitment to supporting Nigeria’s gas revolution.
Ekpo further assured that additional beneficiaries would be selected in future rounds, as the government continues to prioritize bridging the gaps in the gas value chain. The initiative will facilitate the financing and delivery of critical projects, contributing significantly to the nation’s energy and economic growth.
Senator Jaribe Jaribe, Chairman of the Senate Committee on Gas, also voiced support for the initiative, assuring that the Senate would continue to back efforts to ensure its successful implementation. The agreements signed as part of the MDGIF include Joint Operating Agreements, Equity Contribution Agreements, and Joint Venture Account Agreements, designed to strengthen collaboration in the gas sector.
The MDGIF is seen as a critical tool for boosting Nigeria’s domestic natural gas consumption and reinforcing the country’s position as a key player in the global energy market.
