The Federal Government of Nigeria has announced its imminent selection of additional beneficiaries for its initiative aimed at investing in indigenous companies specializing in energy security and gas infrastructure development.
It stated that this initiative is poised to mark a significant milestone in the country’s efforts to enhance energy security and improve gas infrastructure, signaling a commitment to bolster local industries and drive sustainable growth in the energy sector, according to The Punch.
The government’s focus on indigenous companies is expected to foster innovation, create jobs, and support the overall economic development of Nigeria.
The Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo made the announcement at an event where the government approved the disbursement of N122 billion to six indigenous companies.
The funds, provided through the Midstream and Downstream Gas Infrastructure Fund, are designated to support the development of midstream and downstream gas infrastructure.
This initiative aligns with the goals of the President Bola Tinubu-led administration, which seeks to enhance Nigeria’s energy landscape and promote sustainable growth in the gas sector.
In line with the Petroleum Industry Act 2021, which provided for the establishment of the MDGIF, the past government of President Muhammadu Buhari had, in August 2022, floated its pioneer governing council, which signalled the commencement of the fund.
The initiative is expected to address the significant infrastructure deficit that has impeded gas distribution and utilization in Nigeria.
According to a statement from the minister’s spokesperson, Louis Ibah, the initiative aims to foster business relationships and collaboration to achieve Nigeria’s energy security objectives.
He described it as a breakthrough in Nigeria’s gas revolution and “a testament to the government’s commitment to harnessing the country’s gas resources for socio-economic growth.”
“This partnership between the public and private sectors will transform Nigeria’s gas industry, accelerating our journey towards energy security, industrial growth, and economic prosperity.
“The MDGIF is a catalyst for investment and bridging gaps in the gas value chain by ensuring the financing and delivery of critical projects.
“We urge the beneficiaries to utilize these funds judiciously, maintaining the same zeal and dedication that earned them selection as the first batch of MDGIF beneficiaries.
“Additional batches of beneficiaries will be selected in subsequent rounds,” Ekpo said.
He noted that the selection process was rigorous, with each company chosen for its exceptional performance and proven track record in the energy sector.
The statement further highlighted that the six beneficiary companies—Asiko Energy Holdings Limited, FEMADEC Energy Limited, Ibile Oil and Gas Corporation, Nsik Oil and Gas Limited, Rolling Energy Limited, and Topline Limited—were carefully selected for their track record of excellence and commitment to advancing Nigeria’s gas revolution.
In his address, the Chairman of the Senate Committee on Gas, Sen. Jaribe Jaribe, assured that the Senate would continue to provide support to foster a strong partnership in the implementation of the initiative.
The agreements signed included three types: Joint Operating Agreements, Equity Contribution Agreements, and Joint Venture Account Agreements.
