The Federal Government has said it is accelerating investments in strategic gas infrastructure to unlock Nigeria’s domestic gas market, drive industrialisation, create jobs and attract private capital into the energy sector.
The Executive Director of the Midstream and Downstream Gas Infrastructure Fund, Oluwole Adama, disclosed on Thursday that the agency had invested in 113 gas infrastructure projects across the country. These comprise eight gas processing facilities, 15 Compressed Natural Gas/Liquefied Compressed Natural Gas mother stations, 86 CNG/LCNG daughter stations, and four Liquefied Petroleum Gas depots, all at various stages of completion.
Adama spoke during a panel session titled “Boosting the Domestic Gas Market – Driving Economic Growth and Development,” at the Nigerian Oil and Gas Energy Week Conference in Abuja.
He said some of the projects would be commissioned before the end of 2026, while others are expected to come on stream in the first quarter of 2027.
“MDGIF has strategically invested in eight gas processing facilities, 15 CNG/LCNG mother stations, 86 CNG/LCNG daughter stations, and four LPG depots, which are at various stages of completion. We are looking forward to commissioning some projects before the end of this year or by the first quarter of 2027,” he said.
Adama said economic growth and development should not be viewed as competing objectives, arguing that Nigeria’s vast gas reserves provide an opportunity to grow the economy while improving living standards.
“I do not see economic growth and economic development as opposing objectives; rather, I see them as complementary and mutually reinforcing. The real challenge is ensuring that growth is inclusive, sustainable, and translates into tangible improvements in the lives of Nigerians.
“Economic growth is about increasing output, investment, and Gross Domestic Product. Economic development goes much further. It is about creating jobs, reducing energy poverty, improving industrial productivity, strengthening local value chains, and ultimately improving the quality of life of Nigerians.”
He said investments in gas infrastructure would enhance industrial competitiveness, improve energy access, support electricity generation and create jobs. According to him, the key challenge is balancing short-term commercial returns with the long-term investment required to build strategic gas infrastructure.
“That is why the government has a crucial role to play by providing stable policies, predictable regulations, and catalytic financing that de-risk investments and encourage private capital to participate,” he said.
The MDGIF boss dismissed the view that financing is the biggest obstacle to domestic gas projects, saying many proposals fail to attract funding because they are not investment-ready.
“From our experience, we have received over 350 project proposals. Unfortunately, many of those projects came to us before they were actually investment-ready. Some promoters mistakenly believe government funding is a grant. It is not. Yes, it is government money, but it is designed to de-risk investments, not to finance unprepared projects,” he said.
He added that investors require completed feasibility studies, engineering designs, environmental approvals, commercial agreements, and secure gas supply arrangements before committing capital.
“Capital is available for well-structured projects. Investors are not avoiding gas; they are avoiding uncertainty,” Adama stated.
He said the fund, established under Section 52 of the Petroleum Industry Act 2021, prioritises commercially viable projects capable of expanding domestic gas utilisation, supporting gas-to-power, reducing infrastructure gaps, promoting cleaner transportation and attracting private investment.
Providing an update on the fund’s operations, Adama said major investment decisions only began about 18 months ago after the inauguration of the board by President Bola Tinubu.
Looking ahead, he said Nigeria requires about $20bn annually over the next decade to bridge its infrastructure deficit, making private-sector participation essential.
“Our responsibility is therefore to de-risk bankable domestic gas infrastructure projects so that we can unlock large-scale private capital into the sector. That remains our single biggest priority because every strategic gas infrastructure investment creates a multiplier effect by supporting industries, lowering energy costs, creating jobs and strengthening Nigeria’s economic resilience,” he concluded.
Nigeria has more than 200 trillion cubic feet of proven natural gas reserves, but inadequate processing, transportation, and distribution infrastructure has limited domestic utilisation. The Federal Government has continued to promote its “Decade of Gas” initiative and the implementation of the Petroleum Industry Act to expand gas utilisation and support industrial growth.
SOURCE: PUNCH NEWS PAPER
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