Abuja: For decades, Nigeria’s energy sector has faced major infrastructure gaps, especially in the midstream and downstream gas sub-sector. In spite of the country’s abundant natural gas reserves, limited processing plants, poor storage, and distribution systems have clogged the wheel of progress.
According to News Agency of Nigeria, this shortfall has increased dependence on petroleum products, leading to higher costs for homes and businesses. The gap is also slowing the transition to sustainable energy alternatives such as the Compressed Natural Gas (CNG). Motorists in the Federal Capital Territory (FCT) have lamented the difficulty associated with sourcing the CNG, as they spend up to 10 hours waiting on the queue for a refill due to its affordability.
Mr. Azubuike Anyaorah, a motorist, stated that infrastructure has been the major challenge of accessing CNG in FCT. ‘We have been suffering to get CNG in FCT; we join the queue for CNG as early as 5 a.m., and then succeed to get a refill around 3 p.m., thereby rendering the day’s business useless for us. Government’s intention is genuine but the aim is defeated with the difficulty associated with getting the product. Allowing more stations to dispense CNG will go a long way in addressing poverty in the land,’ Anyaorah said.
In January 2024, President Bola Tinubu approved the appointment of the Governing Council of the Midstream and Downstream Gas Infrastructure Fund (MDGIF), with Ekperikpe Ekpo, the Minister of State for Petroleum Resources (Gas) as Chairman, and Mr. Oluwole Adama as Executive Director. Observers note that since then, the team has provided clear direction to ensure that the Fund’s interventions align with national objectives for energy transition, industrial growth, and energy security.
To date, 16 companies, including FEMADEC Energy Limited, Topline Limited, Asiko Energy Holdings Limited, and others, have benefited from MDGIF’s support. Significant progress is already visible across the projects being implemented by these companies. For example, FEMADEC Energy Limited is establishing CNG refueling stations in 20 universities nationwide, with five stations already commissioned and more expected by December 2025.
Asiko Energy Holdings Limited is constructing a 5,000 MT LPG/Propane and 13,200MT LNG Terminal in Ijora, Lagos, scheduled for commissioning in the third quarter of 2026. Aside from this, Topline Limited is developing a 5MMSCFD mini-LNG plant at Oghara, Delta, expected to be commissioned by the last quarter of 2025. Ibile Oil and Gas Corporation, supported to build 15 CNG refueling stations, has achieved 60 percent completion, with commissioning expected by the fourth quarter of 2025.
Mr. Oluwole Adama, Executive Director of MDGIF, provided insights, stating, ‘Our mandate is to turn potential into prosperity; we are focused on delivering high-quality gas infrastructure that supports cleaner energy use, drives industrial growth, and improves livelihoods. We will sustain rigorous oversight, timely reporting, and active engagement with partners so that every project delivers value for money and lasting impact.’
The MDGIF has been an exception in terms of early delivery, launching its first six projects in October 2024, with several schemes already commissioned. Additional projects are slated to become operational in the fourth quarter of 2025 and the first quarter of 2026. This rapid progress highlights the MDGIF’s focused implementation approach and its commitment to turning investment into tangible benefits for Nigerians.
Analysts say the impact of the fund’s interventions is already clear; its projects are expanding access to affordable and cleaner energy, lowering transportation costs through CNG adoption, strengthening energy security by reducing reliance on imports, stimulating industrial growth, and creating thousands of jobs. MDGIF’s interventions are set to grow as the fund scales up delivery across the country, helping to reduce energy costs, enhance national energy security, stimulate industrial development, and generate employment opportunities across the value chain.
Oil and gas watchers recommend that MDGIF continue to prioritize transparent project delivery and robust governance to ensure that investments translate into measurable socioeconomic benefits for communities nationwide.