The Federal Government has announced that the Midstream and Downstream Gas Infrastructure Fund (MDGIF) has committed over N287 billion to gas infrastructure development across the country, driving investment, expanding energy access, and strengthening Nigeria’s industrial base in line with the Petroleum Industry Act (PIA).
The Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Mr. Farouk Ahmed, disclosed this in Abuja during the maiden edition of the Energy Correspondents Association of Nigeria (ECAN) Conference, commemorating four years of the PIA.
Ahmed was represented by the Authority’s Legal Adviser and Secretary, Dr. Joseph Tolorunse.
Ahmed revealed that the MDGIF had invested N287 billion across 62 strategic gas infrastructure projects involving 16 companies.
This investment, he said, has attracted an additional $500 million in funding through the Authority’s partnership with the African Export-Import Bank (Afreximbank), accelerating efforts to unlock Nigeria’s vast gas potential.
He noted that the fund’s role in catalysing private capital was essential to expanding energy access, supporting industrialisation, and positioning Nigeria as a regional gas hub.
Major Sectoral Achievements Under Four Years of PIA
Ahmed said the period had seen major strides in regulatory reform, operational efficiency, and transparency in the midstream and downstream oil and gas sector.
He said the NMDPRA had successfully gazetted 18 regulations, automated key processes to promote ease of doing business, and facilitated a rise in crude supply to domestic refineries from 20,000 barrels per day (bpd) in 2023 to over 40,000 bpd in 2025.
According to him, refined products supplies from local refineries had also improved significantly, with Premium Motor Spirit (PMS) output increasing from 1.3 billion litres in 2024 to 3.8 billion litres in 2025.
He listed key projects supported under the PIA framework to include UTM Offshore Floating LlLNG, NLNG Train 7, AKK and OB3 gas pipelines, Indorama fertilizer plant, Waltersmith refinery expansion, and Supertech’s methanol project.
He said it had issued 10 gas distribution licences covering 692km of pipelines with a combined capacity of 712 million standard cubic feet per day, and granted 23 refinery establishment licences expected to add over 850,000 bpd to Nigeria’s refining capacity.
What you should know
In March, Nairametrics reported that NMDPRA issued refining licenses to three companies to build new refineries in Abia, Delta, and Edo States.
The three proposed refineries are expected to have a combined refining capacity of 140,000 barrels per day.
The companies include:
- Eghudu Refinery Ltd in Edo state issued a 100,000 bpd refining license.
- MB Refinery and Petrochemicals Company Ltd in Delta State issued a License to establish a 30,000 bpd refinery.
- HIS Refining and Petrochemical Company Ltd. in Abia state issued a license to establish a 10,000 bpd refinery.
