The Midstream and Downstream Gas Infrastructure Fund (MDGIF) has leveraged about N671 billion in public funds to attract N1.6 trillion in private investment into gas infrastructure projects across Nigeria.
The Executive Director of MDGIF, Oluwole Adama, disclosed this at the 2026 Annual Conference of the Association of Energy Correspondents of Abuja in Abuja. He said the fund’s intervention is designed to reduce investment risks and make strategic gas projects more attractive to private investors.
According to the fund, the investment is supporting 31 projects and 205 infrastructure assets across the country. When fully operational, the projects are expected to supply approximately 475 million standard cubic feet of gas per day to the domestic market.
The additional supply could represent about 25 per cent of Nigeria’s current domestic gas production, which stands at roughly 1.9 billion standard cubic feet per day.
Adama explained that MDGIF was created as a catalytic financing platform rather than simply a source of loans. Its role is to absorb some of the early risks associated with gas projects, improve their financial viability and encourage commercial investors and lenders to participate.
The fund’s public investment has attracted private capital at about 2.4 times its own contribution, according to MDGIF. Of the projects in its portfolio, 127 have commenced, while 10 have already been commissioned.
The fund identified high financing costs, inadequate infrastructure, regulatory uncertainty and technical and commercial risks as some of the major challenges affecting investment in Nigeria’s midstream gas sector.
MDGIF is also supporting the expansion of Compressed Natural Gas (CNG) infrastructure. Its partnerships cover 20 CNG mother stations and more than 80 daughter stations, while another 75 daughter stations are being supported through an equipment-leasing arrangement.
Another area of focus is the commercialisation of gas that would otherwise be wasted through flaring. MDGIF has partnered with four flare-out awardees whose projects are expected to monetise approximately 444 million standard cubic feet of gas daily and reduce emissions by about 2,845 tonnes per day.
One of the projects receiving support is a five-million-standard-cubic-feet-per-day mini-LNG plant being developed by Topline Limited in Delta State. MDGIF said the project had struggled to secure financing for about three years before its intervention helped unlock an InfraCredit guarantee. The facility is expected to be commissioned within the next two to three months.
The fund is also supporting gas infrastructure at 20 universities, as well as projects involving Ibile Oil and Gas in Lagos and Rolling Energy in Abuja.
The Federal Government has continued to emphasise the importance of investment in gas infrastructure as Nigeria seeks to use its large natural gas resources to support electricity generation, manufacturing, transportation and other economic activities.
For the projects to deliver their expected benefits, MDGIF officials stressed the need for faster project execution, stable policies, regulatory certainty and continued private-sector participation.
