The Federal Government, through the Federation Accounts Allocation Committee (FAAC), deducted a total of N256.52 billion from revenue allocations in the first half of 2025 to finance gas infrastructure projects, official figures have shown. The deductions were made to fund the Midstream and Downstream Gas Infrastructure Fund (MDGIF), which was established to invest in projects that will enhance natural gas transportation, processing, and utilisation across the country.
Data reviewed from FAAC reports between January and June 2025 indicate wide fluctuations in monthly deductions. In January, N35.07bn was deducted, but this fell by 9.24 per cent to N31.83bn in February. March saw a sharp rise of 66.49 per cent to N52.99bn, before plunging to the lowest level of the period in April at N29.19bn. Deductions rose again in May to N41.27bn and further surged by 60.38 per cent in June to N66.18bn, the highest in the six-month period.
The June spike coincided with the Federal Government’s signing of over N165bn in equity investment agreements with 10 private companies for the development of gas processing plants, compressed natural gas (CNG) refuelling stations, and liquefied petroleum gas (LPG) storage facilities nationwide. These projects are central to the government’s “Decade of Gas” agenda, which seeks to boost domestic supply, reduce flaring, and expand access to cleaner energy.
In 2023, President Bola Tinubu inaugurated the governing council of the MDGIF, chaired by the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo. The Nigerian Midstream and Downstream Petroleum Regulatory Authority manages the fund. The MDGIF’s objectives include attracting more than $575bn in investments to expand Nigeria’s midstream and downstream gas infrastructure and deepen private sector participation.
Speaking during the council’s inauguration, Ekpo stressed that the fund represents more than a financing tool. According to him, it is a catalyst for growth, energy security, and sustainable development.
“Our goals are ambitious, but so is our determination,” he said. “With the collective expertise of the governing council and support of stakeholders, we aim to drive innovation, create jobs, and unlock the vast potential of Nigeria’s gas resources.”
Ekpo added that the initiative is expected to translate into lower LPG and CNG prices, particularly benefiting low-income households, while also positioning gas as a central driver of Nigeria’s energy transition.
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