MDGIF seeks incentives to boost investment in gas sector

Midstream and Downstream Gas Infrastructure Fund (MDGIF) at the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has expressed the need for continued government incentives to draw investments into gas processing, transportation, storage, and distribution.

The recommendation follows the progress made sequel to recent disbursement of N122 billion, aimed at bolstering Nigeria’s gas infrastructure. It was made by the Executive Director of MDGIF, Oluwole Adama, at the OTLAfrica Summit in Lagos, themed: “New Energy Order: Updates on Gas, CNG, and LPG.”

Adama highlighted the importance of a supportive regulatory framework in ensuring the growth and stability of the gas sector, noting that sustained incentives from government would be instrumental in fostering a robust environment for private-sector investment in critical infrastructure for Compressed Natural Gas (CNG), Liquefied Petroleum Gas (LPG), and overall gas sector improvements.

The injection of funds is only a step; consistent policy support and incentives will pave the way for increased private investment, enhancing our domestic gas value chain and promoting Nigeria’s economic growth,” Adama stated.

He further underscored the importance of a comprehensive approach that integrates policy, infrastructure, and technology investments to fully realise Nigeria’s gas potential.

Adama stated, “Nigeria is sitting on gas, and in line with the global energy order of cleaner fuels, we must position our gas as the energy transition fuel.” He pointed out that the country, endowed with more gas than crude oil, needs to leverage this resource effectively.