• Targets commissioning of some facilities before year-end
•Adama says bankability biggest hurdle to project financing
Emmanuel Addeh in Abuja
The Executive Director of the Midstream and Downstream Gas Infrastructure Fund (MDGIF), Oluwole Adama, has disclosed that the fund has invested in more than 100 strategic downstream gas infrastructure projects across Nigeria, with some expected to be commissioned before the end of the year.
Adama made the disclosure during a panel session titled, “Boosting the Domestic Gas Market – Driving Economic Growth and Development,” at the 25th Nigeria Oil and Gas (NOG) Energy Week in Abuja.
He said the investments comprise eight gas processing facilities, 15 Compressed Natural Gas/Liquefied Compressed Natural Gas (CNG/LCNG) mother stations, 86 CNG/LCNG daughter stations and four Liquefied Petroleum Gas (LPG) depots, all at various stages of completion.
“Although MDGIF remains a relatively young institution, our focus has been on demonstrating that catalytic investments can unlock broader private-sector participation,” he said.
According to him, the fund is looking forward to commissioning some of the projects before the end of the year to boost downstream gas penetration.
Adama explained that the MDGIF, established under Section 52 of the Petroleum Industry Act (PIA), was created to catalyse investments in strategic midstream and downstream gas infrastructure capable of expanding domestic gas utilisation and supporting industrial growth.
He stressed that the objective of the fund extends beyond financing projects to unlocking new markets for natural gas across the country. “Our objective is not merely to finance projects—it is to unlock markets,” he said.
Responding to a question on whether economic growth and economic development compete within Nigeria’s domestic gas market, Adama argued that both objectives are mutually reinforcing.
“I do not see economic growth and economic development as opposing objectives; rather, I see them as complementary and mutually reinforcing. The real challenge is ensuring that growth is inclusive, sustainable, and translates into tangible improvements in the lives of Nigerians,” he stated.
He noted that investments in gas infrastructure drive industrial competitiveness, provide cleaner and more affordable energy for households and transportation, strengthen electricity generation and create employment. “The measure of success is not how much gas Nigeria produces, but how much prosperity that gas creates for Nigerians,” he said.
Addressing the slow pace of financial close for domestic gas projects, Adama said financing itself was rarely the biggest obstacle, stressing that bankability remains one of the biggest hurdles to project financing.
“The perception is that financing is the biggest challenge, but in reality, financing is often the last hurdle. Projects reach financial close only after they have become bankable, and that requires several risks to be addressed upfront,” he explained.
According to him, delays usually stem from inadequate project preparation, uncertainty over gas demand, infrastructure deficiencies and poor risk allocation.
“The delay is rarely at financial close itself. It usually occurs much earlier during project preparation, commercial structuring and risk allocation. Once those fundamentals are in place, capital becomes significantly easier to mobilise,” he added.
On investor expectations, Adama maintained that capital remains available for properly structured gas projects.
“Capital is available for well-structured projects. Investors are not avoiding gas—they are avoiding uncertainty,” he pointed out.
He identified regulatory certainty, strong project sponsors, bankable commercial arrangements, attractive returns, sound environmental and social governance standards, and policy consistency as the six key factors investors assess before committing funds.
According to him, MDGIF evaluates projects on three pillars: commercial viability, strategic national impact and developmental benefits.
He explained that the fund prioritises investments capable of expanding domestic gas utilisation, supporting gas-to-power projects, promoting industrialisation, reducing gas flaring, accelerating CNG and LNG transportation and attracting additional private investment.
“Our investment decisions are guided by the principle that strategic impact and commercial discipline are complementary—not competing—objectives,” Adama said.
He added that the fund’s overriding priority is to de-risk bankable domestic gas infrastructure projects in order to unlock large-scale private sector investment, saying every strategic investment in gas infrastructure creates multiplier effects across the economy by lowering energy costs, supporting industries, creating jobs and strengthening Nigeria’s economic resilience.
“Every strategic gas infrastructure investment creates a multiplier effect—supporting industries, reducing energy costs, creating jobs, and strengthening Nigeria’s economic resilience,” he pointed out.