FG to Release N400 Billion to Nigerians to Start Gas Business, Lists Criteria

• The Nigerian government has announced plans to release N400 billion under the gas infrastructure fund
• The minister of petroleum resources (gas), Ekperikpe Epo, made this known at the groundbreaking event of a CNG Mother station in Akwa Ibom state
• The minister said the project beneficiaries should prepare with bankable projects to access the fund

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Nigerian government has announced plans to provide another N400 billion gas infrastructure fund to beneficiaries of the initiative in two weeks.

The minister of state for petroleum resources (gas), Ekperikpe Ekpo, disclosed this during the groundbreaking event of the 10MMSCF CNG Mother Station plant at Esit Eket local government area of Akwa Ibom state on Thursday, March 20, 2025.

FG set eligibility criteria for beneficiaries

The N400 billion fund comes after the government released the N122 billion gas infrastructure fund in 2024.

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According to Ekpo, the fund would be available in two weeks, asking Akwa Ibom indigenes to get involved and partner with Nsik Oil and Gas.

He disclosed that eligible beneficiaries must have bankable projects, while the transaction adviser will approve every application.

Ekpo said beneficiaries must pass through the transaction scrutiny to ensure compliance with the laid-down procedure.

He asked Akwa Ibom indigenes to rise and take advantage of the natural resources in Nigeria and not think that opportunities would fall on their laps.

How LGs can help gas project succeed

Punch reports that Ekpo asked local governments to provide the necessary environment for the gas project to succeed.

“It is left for you to provide a conducive environment so this project will thrive,” he said.

The chairman and chief executive officer of Nsik Oil and Gas, Nsikan Johnny, noted that the groundbreaking event was a significant step in the journey to provide cleaner, safer, and affordable energy solutions to Nigerians.

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Johnny said that the project reflects the Nigerian government’s commitment to drive economic growth, reducing environmental impact, and improving the lives of communities.

The Nsik Oil and Gas boss applauded the collaboration between the Nigerian government and Akwa Ibom state governor, Umo Eno, and the Midstream and Downstream Gas Infrastructure Fund (MDGIF) for the conducive environment for gas development.

Reason for the gas infrastructure fund

According to reports, the Nigerian government, through the MDGIF is investing N400 billion in gas infrastructure, following the release of N122 billion last year, to improve gas distribution and utilisation, reduce flaring, and drive the adoption of CNG and LPG. 

The MDGIF was established under the Petroleum Industry Act (PIA) 2021 to address the gas infrastructure deficit in Nigeria and focuses on enhancing domestic gas utilization, minimising gas flaring, and attracting investment in the gas sector. 

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In October 2024, the government released N122 billion to six gas infrastructure companies.

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In January 2024, President Bola Tinubu approved the appointment of the executive director and governing council of the Midstream and Downstream Gas Infrastructure Fund (MDGIF). 

Special adviser to the president on media and publicity, Chief Ajuri Ngelale, disclosed this in a statement on Friday, January 12. 

This was contained in a post shared by the special assistant to the president, Olusegun Dada, via his X page (formerly known as Twitter) @Dolusegun16.

FG earns over $500m from investments in gas incentives

Legit.ng earlier reported that the Nigerian government said it made over $500 million in investments from January to October 2024 from the fiscal incentives introduced to boost the country's access to CNG, LPG and LNG.

The Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, disclosed this on Monday, October 28, 2024, during the session's opening at the ongoing Oil Trading & Logistics Africa Downstream Energy Week in Lagos.

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She said the incentives included waivers on import duties and VAT on the sale and distribution of LNG, CNG, LPG, and associated equipment.

Proofreading by Nkem Ikeke, copy editor at Legit.ng.

Source: Legit.ng