The Federal Government has deducted a total of N256.52bn from revenue allocations to finance gas infrastructure projects in the first half of 2025, according to official figures from the Federation Accounts Allocation Committee.

The deductions were channelled into the Midstream and Downstream Gas Infrastructure Fund, set up to support projects that enhance natural gas transportation, processing, and utilisation. Monthly records showed significant fluctuations, reflecting both project execution surges and procedural delays.

A breakdown of FAAC reports between January and June revealed that N35.07bn was deducted in January, dropping to N31.83bn in February.

Deductions rose sharply by 66.49 per cent to N52.99bn in March before plunging 44.91 per cent in April to N29.19bn, the lowest monthly release in the period. The government increased allocations again in May to N41.27bn and recorded the highest deduction of N66.18bn in June, a 60.38 per cent jump.

The June spike coincided with the Federal Government’s signing of over N165bn in equity investment agreements with 10 companies to build six gas processing plants, three compressed natural gas stations, and a bulk liquefied petroleum gas facility across the country.

Two of the plants are designed to harness flare gas, advancing Nigeria’s “Decade of Gas” agenda aimed at boosting supply, cutting flaring, and driving clean energy adoption.

The MDGIF, managed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority and chaired by the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, is expected to attract more than \$575bn in long-term investments. Originally designed to raise funds through levies on petroleum and natural gas sales, it now relies on government allocations.

Ekpo described the fund as a vehicle for progress and sustainable development, stressing its potential to lower LPG and CNG prices while creating jobs and strengthening energy security.