The Federal Government has announced plans to intensify investments in key gas infrastructure projects as part of efforts to expand Nigeria’s domestic gas market, boost industrial growth, generate employment and encourage greater private sector participation in the energy industry.
The Executive Director of the Midstream and Downstream Gas Infrastructure Fund (MDGIF), Oluwole Adama, disclosed on Thursday that the agency was currently funding 113 gas infrastructure projects spread across the country.
The projects include eight gas processing plants, 15 Compressed Natural Gas/Liquefied Compressed Natural Gas (CNG/LCNG) mother stations, 86 CNG/LCNG daughter stations and four Liquefied Petroleum Gas (LPG) depots, all currently at different stages of development.
Adama made the disclosure while speaking during a panel discussion 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 are expected to be completed and commissioned before the end of 2026, while others will become operational 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 expansion and national development should be pursued together, noting that Nigeria’s abundant gas resources provide an opportunity to grow the economy while improving citizens’ welfare.
“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 explained that improved gas infrastructure would strengthen industrial competitiveness, expand access to energy, support electricity generation and create more employment opportunities.
According to him, the major task is finding a balance between immediate financial returns and the long-term investments needed to develop 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 executive director rejected the argument that lack of financing remains the biggest challenge facing domestic gas projects, saying many proposed projects fail to secure investment because they are not adequately prepared.
“From our experience, we have received over 350 project proposals. Unfortunately, many of those projects came to us before they were actually investment-ready.
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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 noted that investors usually require proper feasibility studies, engineering plans, environmental approvals, commercial agreements and reliable gas supply arrangements before committing funds.
“Capital is available for well-structured projects. Investors are not avoiding gas; they are avoiding uncertainty,” Adama stated.
He added that the fund, established under Section 52 of the Petroleum Industry Act 2021, focuses on commercially viable projects aimed at increasing domestic gas consumption, supporting gas-to-power initiatives, addressing infrastructure shortages, encouraging cleaner transportation and attracting private investment.
Providing an update on the fund’s activities, Adama said major investment decisions only commenced about 18 months ago following the inauguration of the MDGIF board by President Bola Tinubu.
Looking ahead, he said Nigeria would require approximately $20bn annually over the next decade to address its infrastructure gap, making private sector involvement critical to achieving the target.
“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 currently has over 200 trillion cubic feet of proven natural gas reserves, but limited processing, transportation and distribution infrastructure has slowed domestic gas utilisation.
The Federal Government has continued to push its “Decade of Gas” initiative and the implementation of the Petroleum Industry Act as part of efforts to expand gas usage, support industrial development and improve energy access.