Morganable News/Business
Adama explained that while economic growth focuses on increasing output, investment and Gross Domestic Product, economic development goes further by addressing job creation, energy poverty, industrial productivity and overall quality of life
kaNo —
The Federal Government has intensified efforts to deepen Nigeria’s domestic gas utilisation, backing no fewer than 113 infrastructure projects aimed at accelerating industrialisation, boosting energy access and attracting private sector investment into the energy value chain.
This was disclosed by the Executive Director of the Midstream and Downstream Gas Infrastructure Fund, Oluwole Adama, during a panel session at the Nigerian Oil and Gas Energy Week Conference held in Abuja on Thursday.
Adama said the projects, spread across different parts of the country, are at various stages of completion and form a critical part of the government’s strategy to unlock Nigeria’s vast gas potential and drive long-term economic development.
According to him, the investments include eight gas processing facilities, 15 Compressed Natural Gas/Liquefied Compressed Natural Gas mother stations, 86 CNG/LCNG daughter stations, and four Liquefied Petroleum Gas depots.
“MDGIF has strategically invested in these projects, and we are looking forward to commissioning some before the end of this year or by the first quarter of 2027,” Adama said.
He stressed that the expansion of gas infrastructure is central to Nigeria’s industrialisation agenda, arguing that economic growth and development should be seen as mutually reinforcing rather than competing objectives.
“I do not see economic growth and economic development as opposing objectives; rather, I see them as complementary. The real challenge is ensuring that growth is inclusive, sustainable, and translates into tangible improvements in the lives of Nigerians,” he stated.
Gas Project Set To Boost Productivity
Adama explained that while economic growth focuses on increasing output, investment and Gross Domestic Product, economic development goes further by addressing job creation, energy poverty, industrial productivity and overall quality of life.
He added that investments in gas infrastructure would not only enhance industrial competitiveness but also support electricity generation, deepen domestic gas utilisation and create employment opportunities across the value chain.
However, the MDGIF boss identified a major challenge in balancing short-term commercial returns with the long-term capital requirements needed to develop critical infrastructure.
He emphasised that the government has a crucial role in creating an enabling environment through stable policies, predictable regulations and targeted financing mechanisms that reduce risks for investors.
“That is why the government must provide catalytic financing that de-risks investments and encourages private capital to participate,” he said.
Adama also dismissed the notion that lack of financing is the primary obstacle facing domestic gas projects in Nigeria, noting instead that many proposals fail because they are not investment-ready.
Drawing from the fund’s experience, he revealed that over 350 project proposals had been submitted, but a significant number did not meet the required standards for funding.
“Some promoters mistakenly believe government funding is a grant. It is not. It is designed to de-risk investments, not to finance unprepared projects,” he said.
He explained that investors typically require comprehensive feasibility studies, detailed engineering designs, environmental approvals, commercial agreements and secure gas supply arrangements before committing funds.
“Capital is available for well-structured projects. Investors are not avoiding gas; they are avoiding uncertainty,” Adama added.
The MDGIF, established under Section 52 of the Petroleum Industry Act 2021, focuses on supporting commercially viable projects that can expand domestic gas use, improve infrastructure, promote cleaner energy and attract private investment.
Providing further insight into the fund’s operations, Adama said major investment decisions only began about 18 months ago following the inauguration of its board by President Bola Tinubu.
“Our responsibility is to de-risk bankable domestic gas infrastructure projects so that we can unlock large-scale private capital. Every strategic gas investment creates a multiplier effect by supporting industries, lowering energy costs, creating jobs and strengthening economic resilience,” he said.
Nigeria holds over 200 trillion cubic feet of proven natural gas reserves, one of the largest in the world.
However, inadequate infrastructure for processing, transportation and distribution has continued to limit domestic utilisation.
To address this gap, the government has been promoting its “Decade of Gas” initiative alongside the implementation of reforms under the Petroleum Industry Act, with the aim of positioning gas as a transition fuel for economic growth and cleaner energy.
Despite these efforts, challenges persist in the downstream segment, particularly in the pricing of cooking gas.
Recent data indicate that although supply has improved following government intervention, prices remain elevated across the country, placing continued pressure on households.
Nigerians Struggling With Soaring Gas Prices
Two weeks after an emergency stakeholders’ meeting convened by the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, market stability has improved, but affordability remains a concern.
Consumers are still paying between N1,300 and N1,650 per kilogramme for cooking gas in many parts of the country, significantly higher than the sub-N1,000 levels recorded before the supply disruption in May.
At the peak of the crisis in June, prices had surged to as high as N2,500 per kilogramme in some locations, prompting government intervention.
The National President of the Nigerian Association of Liquefied Petroleum Gas Marketers, Edu Inyang, confirmed that while prices have begun to ease, they are yet to return to pre-crisis levels.
In northern cities such as Kano and Kaduna, prices hover between N1,300 and N1,550 per kilogramme, while Maiduguri and parts of the North-East record the highest rates, ranging from N1,350 to N1,650 per kilogramme.
Inyang noted that while government intervention has helped restore supply and reduce extreme volatility, more work is needed to make cooking gas affordable for millions of Nigerians.
Industry stakeholders say that sustained investment in gas infrastructure, improved distribution networks and stable regulatory policies will be critical in addressing pricing challenges and ensuring that the benefits of increased gas production are felt by end users.
