Nigeria is strategically deploying capital to accelerate the transition to a gas-based economy in a concerted effort to bolster its midstream gas infrastructure. Mrs. Olu Verheijen, the Special Adviser to President Tinubu on Energy, made this announcement during the OTL Downstream Week held in Lagos.
Speaking at the event, Mrs. Verheijen emphasized the government’s commitment to addressing the critical gas infrastructure gaps in the country. She noted, “We are making concerted efforts to streamline a lot of the approval processes and regulatory processes. We have been working very closely with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to deploy capital from the Midstream Infrastructure Fund into the Midstream Gas phase where there is a critical infrastructure gap.”
At the same event, Farouk Ahmed, the Authority Chief Executive Officer of the NMDPRA, shed light on the government’s goal of harnessing Nigeria’s abundant gas resources as a transition fuel. Nigeria boasts over 208 trillion cubic feet of gas, and the administration is keen on unlocking this potential to expedite the transition to a net-zero economy.
Mr. Ahmed stated, “We as the Nigerian Midstream and Downstream Petroleum Regulatory Authority are enablers of investments, so we are here to ensure that potential investors come and invest in Nigerian oil and gas – particularly the midstream and downstream sector. The midstream is untapped, so there are a lot of potentials and possibilities there. Our participation here is of enormous importance to us because we interact with potential investors and current stakeholders.”
Meanwhile, Gabriel Aduda, the Permanent Secretary at the Ministry of Petroleum Resources, outlined key areas of focus for the development of Nigeria’s downstream sector. These areas include infrastructural development, refining capacity expansion, and supportive regulations.
During the Domestic Gas and Gas Infrastructure Summit (DGGIS) held in Abuja in October 2023, Ekperikpe Ekpo, Nigeria’s Minister of State for Petroleum Resources (Gas), highlighted the significance of the Petroleum Industry Act (PIA) in addressing infrastructural gaps in the gas sector. He stressed that natural gas is a long-term solution to energy deficits in Nigeria and that closing infrastructure gaps is a crucial part of the plan.
Ekpo remarked, “In addressing the infrastructural deficit that has long held our gas sector, the implementation of the Petroleum Industry Act (PIA) marks a watershed moment. The PIA framework on strategic interventions such as the Midstream and Downstream Gas Infrastructure Fund (MDGIF) is already bridging the infrastructure gap that has existed, fostering an environment that attracts investments and innovation, which are crucial for expanding our domestic gas utilization and infrastructure.”
