Nigeria’s Gas Infrastructure Fund Approves N671 Billion for 31 Projects

The Midstream and Downstream Gas Infrastructure Fund (MDGIF) has given the green light to N671 billion in Final Investment Decisions (FIDs) for 31 gas infrastructure projects. These projects have a combined investment value of N1.6 trillion and aim to significantly boost Nigeria's domestic gas supply.

The MDGIF portfolio includes 205 infrastructure assets across the gas value chain, such as 160 compressed natural gas (CNG) daughter stations, 20 CNG/liquefied compressed natural gas (LCNG) mother stations, 13 depots and liquefied natural gas (LNG) facilities, and 12 gas processing plants. The fund estimates that these projects could increase gas supply by 25.2 per cent when operational.

MDGIF's intervention is structured as minority catalytic equity, focusing on projects with commercial and strategic potential but which struggle to secure conventional bank financing. The fund is financed through a 0.5 per cent levy on wholesale gas and petroleum prices, gas-flaring penalties, grants, and investment income. Its incubation period for projects ranges from 18 months to five years.

The portfolio currently includes nine CNG stations in commercial operation across Lagos, Owerri, Abuja, and Ile-Ife. Key operators include IBILE Oil & Gas, FEMDAEC, Portland Gas, and Rolling Energy, each running multiple stations in different locations.