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Nigeria’s Gas Infrastructure Gets N287bln Boost – NMDPRA

"MDGIF has catalysed an additional $500 million investments to gas infrastructure by leveraging the African Export-Import Bank’s (Afreximbank) partnership"

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Nigeria’s Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has announced that the Midstream and Downstream Gas Infrastructure Fund (MDGIF) has attracted over N287 billion in investments for various gas infrastructure projects.

The MDGIF is a key initiative under the Petroleum Industry Act (PIA) aimed at driving investment in gas infrastructure to boost domestic use and export-driven growth.

“MDGIF has catalysed an additional $500 million investments to gas infrastructure by leveraging the African Export-Import Bank’s (Afreximbank) partnership,” said Farouk Ahmed, NMDPRA’s CEO, at the Energy Correspondents Association of Nigeria (ECAN) conference in Abuja.

Ahmed highlighted the authority’s achievements since the PIA’s enactment, including regulatory reforms, operational efficiency, and transparency in the midstream and downstream oil and gas sector.

The NMDPRA has gazetted 18 regulations, automated key processes, and increased crude supply to domestic refineries from 20,000 barrels per day (bpd) in 2023 to over 40,000 bpd in 2025.

Refined products supplies have also improved, with petrol output rising from 1.3 billion litres in 2024 to 3.8 billion litres in 2025.

Key projects supported under the PIA include UTM Offshore floating liquefied natural gas (FLNG), Nigeria LNG Train 7, and the Ajaokuta-Kaduna-Kano (AKK) gas pipeline.

The authority has issued 10 gas distribution licences covering 692km of pipelines and granted 23 refinery establishment licences expected to add over 850,000 bpd to Nigeria’s refining capacity.

“We have developed gas trading and settlement regulations, leading to the licensing of Nigeria’s first gas trading exchange in May,” Ahmed said.

The NMDPRA’s efficient regulation has ensured steady product supply nationwide, maintaining sufficiency levels of 12 to 48 days and eliminating fuel shortages.

See also  Breaking: NMDPRA to Ban PMS-Laden Trucks Above 60,000 Litres from Nigerian Roads

Ahmed expressed optimism that the Dangote refinery, modular refineries, and major gas infrastructure completion would further expand domestic refining capacity and energy access.

The authority is working to address regulatory overlaps and attract private investment, ensuring a level playing field in the sector.

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