Why Nigeria Should Sustain Current Efforts Towards Cleaner, Cheaper Energy
Four years after the introduction of the Petroleum Industry Act (PIA), Nigeria is pushing for cheaper and cleaner energy through the Midstream and Downstream Gas Infrastructure Fund (MDGIF). With 16 projects between 2024 and 2025, there is a need to sustain momentum to ensure the nation ends gas flaring, provides jobs and turns gas resources to wealth. KINGSLEY JEREMIAH writes.
FOR decades, Nigeria’s energy story has been one of a paradox. The country sits on an estimated 209 trillion standard cubic feet of natural gas reserves, the largest in Africa and among the top 10 globally, yet it continues to struggle with unreliable energy supply, over-dependence on imported petroleum products, and rising costs for households and businesses. The inability to harness natural gas effectively has left industries underpowered, transport costs inflated, and millions of homes without affordable access to cleaner fuels for cooking or electricity.
The Midstream and Downstream Gas Infrastructure Fund (MDGIF), established under the Petroleum Industry Act (PIA) of 2021, was designed to change this narrative.
For lawmakers and key stakeholders, who actively took part in the passage of the PIA, the MDGIF remains the sustainable solution to the country’s challenges in gas processing infrastructure, storage and distribution facilities, pipelines and refuelling stations, among others. The fund, domiciled in the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA), primarily seeks to transform Nigeria’s energy economy through strategic infrastructure investments.
In January 2024, President Bola Tinubu appointed the Fund’s governing council with the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, as Chairman and Mr. Oluwole Adama as Executive Director. Since then, the MDGIF has funded over 16 companies in an attempt to bridge the nation’s gas infrastructure deficit, attract private capital and ensure that gas becomes the backbone of Nigeria’s energy transition.
The plan, which aligns with Nigeria’s “Decade of Gas” agenda, could be the country’s leeway to use natural gas not just as a transition fuel and key enabler of the energy transition plan and nationally determined commitments, but as the foundation of industrial growth, energy security and sustainable development. However, ambition alone is not enough without infrastructure.
Although gas flaring has reduced in recent years, Nigeria and other countries still flare billions of cubic feet of gas yearly, while industries and power plants import expensive fuels from abroad. Domestic demand, from transport fleets seeking Compressed Natural Gas (CNG) to households needing Liquefied Petroleum Gas (LPG), consistently outstrips supply.
If Nigeria can expand domestic gas use, it can reduce import bills, lower costs for industries, create jobs, and strengthen energy security. And as renewables gradually scale up, gas can provide reliability for transportation and grid networks. This is why the MDGIF is very strategic to energy security in Nigeria.
In the last one year, Nigeria, through the MDGIF, provided funding to 16 companies ranging from small-scale LNG developers to major LPG terminal operators. These include FEMADEC Energy Limited, Topline Limited, Asiko Energy Holdings Limited, Ibile Oil and Gas Corporation, Rolling Energy Limited, Nsik Oil and Gas Limited and several others.
Documents obtained by journalists showed that FEMADEC has perhaps made the most visible progress. Its plan to establish 20 CNG refuelling stations in Nigerian universities has already delivered five – Obafemi Awolowo University, Ahmadu Bello University, Yakubu Gowon University, the Federal University of Technology Owerri, and the University of Uyo. By the end of 2025, 15 more stations are scheduled to open, bringing cheaper and cleaner fuel to thousands of students and staff.
Asiko Energy Holdings is building a 13,200 MT LNG and 5,000 MT LPG/propane terminal in Ijora, Lagos. Topline Limited is developing a mini-LNG plant in Oghara, Delta State, to supply industries and households, with commissioning expected in late 2025. Ibile Oil and Gas Corporation, supported to construct 15 CNG stations across Lagos, has already achieved 60 per cent completion.
Meanwhile, Rolling Energy Limited and Nsik Oil and Gas are advancing multi-location CNG projects across northern states. Several other initiatives, from flare gas capture plants to bulk LPG storage, are also underway.
By accelerating the rollout of CNG, LNG and LPG infrastructure, especially on the backdrop of the removal of subsidy on petrol, Nigeria can reduce energy costs, enhance national energy security, stimulate industrial development and generate employment opportunities across the value chain.
The concerns for stakeholders are the need for the government to ensure strict monitoring of the companies being funded, ensure transparency, provide regulatory oversight and ensure that the projects are expedited.
Speaking on the timeline of delivery, energy expert, Abiodun Kayode, noted that Nigerians must understand that infrastructure needs time, adding that the physical construction is only the last stage of a complex project.
“What appears on site as construction is the end product of years of planning, design, and financing. Each stage requires coordination among regulators, contractors, financiers and local communities. If even one step is delayed, the entire project can stall,” he said.
He believes that the delivery of some of the projects within a year shows a positive outlook that needs to be sustained.
According to him, it is common for infrastructure schemes to require several years from first concept to commissioning, with the economic and social benefits gradually becoming evident once systems are fully operational.
Executive Director of MDGIF, Oluwole Adama, while noting that the mandate of the agency is to turn potentials into prosperity, echoed the resolve for a quality infrastructure that supports cleaner energy use, drives industrial growth and improves livelihoods.
“We will sustain rigorous oversight, timely reporting and active engagement with partners so that every project delivers value for money and lasting impact,” he noted.
According to him, the projects are expanding access to affordable and cleaner energy, lowering transportation costs through CNG adoption, strengthening energy security by reducing reliance on imports, stimulating industrial growth, and creating thousands of direct and indirect jobs.
He noted that the Fund had launched its projects and commissioned several schemes within a short period, stressing that additional projects are slated to become operational in fourth quarter 2025 and first quarter 2026.
Adama said the rapid progress highlights the MDGIF’s focused implementation approach and its commitment to turning investment into tangible benefits for Nigerians.
At a signing ceremony in May 2025, Minister of Petroleum Resources (Gas), Ekperikpe Ekpo, insisted that the future of Nigeria’s gas economy would not be judged by the documents but by pipelines laid, facilities commissioned, jobs created, and energy supplied to millions.
Ekpo believes that the MDGIF remains a key initiative to drive integrated gas infrastructure, closing long-standing gaps and unlocking opportunities across industries.
Beyond energy, he noted that the impact would extend to agriculture, manufacturing, and digital innovation.
“We stand at a pivotal moment where every effort counts towards our national goal. Each pipeline and facility commissioned should serve as a benchmark of our resolve, ingenuity, and the confidence we aim to inspire at home and on the global stage,” he noted.
Chairman of the Board of Trustees of the Community Development Committees of Niger Delta Oil and Gas Producing Areas, Joseph Ambakederimo, said there was a need to monitor the funding and the beneficiary companies.
“These projects will accelerate the transition to cleaner energy and reduce production costs. But corruption must be checked to ensure resources are well used,” he said.
The Executive Secretary of the Major Energy Association of Nigeria (MEMAN), Clement Isong, stressed that outcomes would depend on the track records of beneficiary firms and the transparency of MDGIF’s processes.
He also called for stronger public communication campaigns to build awareness and adoption of gas across communities.
A partner at an advisory firm, Kreston Pedabo, Olufemi Idowu, said cheaper and more reliable gas could be a turning point for the economy.
Idowu said: “The support of 16 companies to grow Nigeria’s CNG, LNG, and LPG infrastructure shows that the Midstream Gas Infrastructure Fund is beginning to deliver on its mandate under the PIA. These kinds of investments can help Nigeria move faster toward cleaner and cheaper energy, especially for transport and household use. Beyond energy, they can also open up new jobs, support local manufacturing, and reduce our reliance on imported fuels. This could be a turning point for both our energy sector and the wider economy if managed well,” he said.
Amid the scepticism, the potential impact of a functional gas infrastructure backbone is enormous. Energy costs remain one of the biggest drags on Nigerian manufacturing competitiveness. Diesel-powered generators consume vast amounts of foreign exchange, while high transport costs inflate the price of goods.
