Abuja:The Midstream and Downstream Gas Infrastructure Fund (MDGIF) has successfully leveraged N671 billion in public funds to attract N1.6 trillion in private investment for gas infrastructure projects throughout Nigeria.
According to News Agency of Nigeria, Mr. Oluwole Adama, Executive Director of MDGIF, shared these developments at the 2026 Annual Conference of the Association of Energy Correspondents Abuja (AECAF). Represented by Mr. Elvis Duruji, Director of Strategy, Research, and Deal Origination, Adama highlighted the theme ‘Derisking Domestic Gas Infrastructure.’
The fund has supported 31 projects and 205 infrastructure assets nationwide, with projections to deliver approximately 475 million standard cubic feet (mmscf) of gas daily to the domestic market when operational. This initiative underscores MDGIF’s mission to utilize public funds for de-risking strategic gas projects, thereby attracting private capital into the sector.
The intervention by MDGIF has been pivotal in mobilizing private investment while reducing barriers to investment in the midstream gas sector. However, challenges such as high financing costs, inadequate infrastructure, regulatory uncertainty, and technical and commercial risks persist as major hurdles to investment.
The completion of projects in MDGIF’s portfolio could potentially increase domestic gas supply by about 25%, based on the current production of around 1.9 billion standard cubic feet daily.
In terms of flare-gas commercialization, MDGIF has collaborated with four flare-out awardees, aiming to monetize 444 million standard cubic feet of gas daily and reduce emissions by approximately 2,845 tonnes daily.
Additionally, the fund has partnered with 30 unincorporated joint ventures and an equipment leasing company, covering 20 Compressed Natural Gas (CNG) mother stations and more than 80 CNG daughter stations, along with 75 additional daughter stations financed through the leasing arrangement.
Among the fund’s flagship interventions is a five million standard cubic feet per day mini-LNG plant developed by Topline Ltd. in Delta, which is set to be Nigeria’s first indigenous mini-LNG project. After struggling for financing for three years, MDGIF’s equity investment facilitated an InfraCredit guarantee, with the facility expected to be commissioned in the next two to three months.
Other interventions include CNG infrastructure across 20 universities, as well as projects by Ibile Oil and Gas in Lagos and Rolling Energy in Abuja.
MDGIF’s long-term objective is to absorb early-stage risks associated with gas projects, making them more attractive to lenders and private investors. By absorbing part of the initial risks, the fund aims to convert uncertainty into bankability, enabling private investment and operational gas infrastructure.