The Midstream and Downstream Gas Infrastructure Fund (MDGIF) is stepping up efforts to mobilise private sector and foreign investment to address Nigeria’s estimated $200 billion gas infrastructure funding gap over the next decade.
Executive Director of the fund, Oluwole Adama, said the scale of financing required to develop the country’s gas infrastructure made it necessary to deepen partnerships with private investors, development finance institutions and international funding organisations.
Adama spoke during the commissioning of five compressed natural gas (CNG) daughter and last-mile retail stations established by the Ibile Oil and Gas Corporation (IOGC) in collaboration with the MDGIF across Lagos State.
The facilities are located in Abule-Egba, Oko-Oba, Ajah, Ogolonto and Idimu, expanding access to gas distribution and retail infrastructure in different parts of the state.
According to Adama, the fund does not have the financial capacity to independently finance the scale of infrastructure required to unlock Nigeria’s gas potential.
He said attracting additional capital would therefore be central to accelerating the development of infrastructure across the midstream and downstream segments of the industry.
The MDGIF is positioning itself as a catalytic financing institution that can reduce investment risks, unlock additional funding and encourage businesses to commit capital to viable gas infrastructure projects.
The strategy is expected to involve collaboration with development finance institutions, foreign investment funds and private sector operators capable of providing the long-term capital required for large-scale projects.
Nigeria has identified natural gas as a major component of its energy transition and industrial development strategy. However, inadequate infrastructure for processing, transportation, storage and distribution continues to constrain the country’s ability to fully utilise its substantial gas resources.
The expansion of CNG infrastructure is also part of efforts to broaden access to alternative fuels for transportation and industrial use, while supporting the development of a more diversified domestic energy market.
The commissioning of the five Lagos facilities demonstrates the role of partnerships between public institutions and commercial operators in extending gas distribution networks.
For Nigeria to translate its gas reserves into broader economic benefits, however, investment will need to extend beyond retail outlets to include pipelines, processing plants, storage facilities and other critical infrastructure.
The MDGIF’s effort to attract private and international financing is therefore expected to play an important role in bridging the funding gap and supporting the expansion of the country’s gas value chain.
