Minister Inaugurates Multi-billion Dollar Midstream, Downstream Gas Infrastructure Fund Governing Council

The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo has called on stakeholders, both domestic and international, to join hands with the management of the multi-billion dollar Midstream and Downstream Gas Infrastructure Fund (MDGIF) to boost investments in the gas sector.

The minister stated this yesterday in Abuja at the inauguration of the Governing Council of the MDGIF, according to a statement by his Spokesman, Mr. Louis Ibah.

Ekpo, who is the chairman of the MDGIF, said the fund’s mandate, which is to support the midstream and downstream gas infrastructure development aligns seamlessly with the aspirations of the President Bola Tinubu-led administration.

In line with the Petroleum Industry Act (PIA) 2021, which provided for the establishment of the MDGIF, the immediate-past government of President Muhammadu Buhari had in August 2022 floated its pioneer governing council, which signalled the commencement of the fund.

The initiative was expected to help bridge the huge infrastructure deficit which has been a major hindrance towards gas distribution and utilisation in the country, especially in the wake of the ‘Decade of Gas’ and energy transition policies of the nation.

The MDGIF was to be generated from a pool of a certain 0.5 per cent or so, paid by each of the oil marketing companies on every litre of petroleum products imported into the country either through private finance initiative (PFI) or through the Nigerian National Petroleum Company Limited (NNPC). The fund is also raised through fines paid by oil and gas producing companies as penalties for flaring gas.

The fund is currently domiciled as a directorate at the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) where an executive director of the Authority is serving as the chief executive officer of the MDGIF, effectively making the Authority the custodian and manager of the fund.

 The then Buhari government had stated that over $20 billion would be needed yearly in the next 10 years to bridge the gas infrastructure gap in the country, which could exceed $200 billion in a decade.

 But addressing the governing council yesterday, Ekpo explained that the establishment of the MDGIF came at a critical juncture in Nigeria’s energy landscape when the strive for economic diversification and sustainable development with gas as a major component was at its peak.

He, therefore, urged members to work towards surmounting the challenges of low investments, poor gas infrastructure in the midstream and downstream space and unemployment in the sector.

 Ekpo said: “The MDGIF is not merely a fund; it is a vehicle for progress, a conduit for prosperity, and a catalyst for sustainable development. This alignment should, in turn, lead to a tangible reduction in the prices of Liquefied Petroleum Gas (LPG) and Compressed Natural Gas (CNG), benefitting particularly the low-income earners in our society.

 “With the collective expertise and commitment of the Governing Council, as well as the support of our stakeholders, we aim to drive innovation, create employment opportunities, and ensure energy security for our nation.”

Members of the MDGIF Governing Council include: Mr. Oluwole Adama, Executive Director; Mr. Joseph Tolorunshe, Secretary; NMDPRA Chief Executive — Mr. Farouk Ahmed;  Representative of the Central Bank of Nigeria (CBN);  Representative of the Federal Ministry of Finance; Independent members — Ms. Amina Maina (North-East); Mr. Edet David Ubong (South-South);  and Mr. Tajudeen Bolaji Musa (South-West).