Nigeria to Expand Support for Indigenous Gas Companies in Push for Energy Security
The Nigerian government is poised to extend its support to more indigenous companies as part of its ongoing efforts to bolster energy security and develop critical gas infrastructure. This initiative, seen as a key milestone in Nigeria’s energy strategy, was announced by Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas), during an event where N122bn was disbursed to six local firms.
The funds, sourced from the Midstream and Downstream Gas Infrastructure Fund (MDGIF), aim to bridge the country’s significant gas infrastructure gap, supporting the broader ambitions of President Bola Tinubu’s administration. In line with the Petroleum Industry Act 2021, the fund was established to stimulate growth in Nigeria’s gas sector, particularly in light of the country’s Decade of Gas and energy transition policies.
According to a statement by Ekpo’s spokesperson, Louis Ibah, the initiative marks a major advancement in Nigeria’s gas revolution and reflects the government’s commitment to leveraging the country’s vast gas reserves for economic development. “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,” Ekpo remarked.
The disbursement of funds to six pioneering companies—AsikoEnergy Holdings Limited, FEMADEC Energy Limited, Ibile Oil and Gas Corporation, Nsik Oil and Gas Limited, Rolling Energy Limited, and Topline Limited—signals the start of what officialshope will be a transformative phase in the nation’s gas infrastructure. These companies were selected after a rigorous process, based on their proven dedication to advancing Nigeria’s gas development agenda.
Ekpo emphasised the importance of judicious use of the funds, urging the companies to continue demonstrating the same commitment that secured their selection as the first batch of beneficiaries. Additional rounds of funding, he confirmed, will follow, as the government seeks to scale up its efforts to ensure energy security.
In addition to financial support, the government has signed a series of agreements with the selected firms, including Joint Operating Agreements, Equity Contribution Agreements, and Joint Venture Account Agreements, all designed to facilitate the smooth execution of gas projects across the country.
Senator Jaribe Jaribe, Chairman of the Senate Committee on Gas, reiterated the Senate’s full backing for the initiative, pledging continued legislative support to strengthen the public-private partnership driving Nigeria’s gas revolution. Meanwhile, MDGIF Executive Director, Oluwole Adama, highlighted the fund’s key role in boosting domestic gas consumption and meeting the country’s growing energy demands.
With more beneficiaries set to be chosen in the coming months, the initiative stands as a cornerstone of Nigeria’s long-term energy strategy, positioning the country as a leader in gas development within the region.
