Business
MDGIF Hunts $20bn in Global Funds for Gas Infrastructure
The Midstream and Downstream Gas Infrastructure Fund (MDGIF) is stepping up efforts to attract international capital for critical gas infrastructure projects as it seeks to help close Nigeria’s estimated $20 billion annual funding gap in the sector.
The Fund is expanding its collaboration with international financial institutions, including a $500 million agreement with the African Export-Import Bank (Afreximbank), as part of efforts to unlock fresh investment and accelerate the development of Nigeria’s vast gas resources.
Executive Director of the MDGIF, Mr. Oluwole Adama, said the gas infrastructure business remains highly capital-intensive and largely unattractive to conventional commercial lenders because of the long gestation periods and risks associated with such investments.
Adama disclosed this at a recent industry event in Abuja.
He said the Fund was nevertheless supporting about 200 gas infrastructure projects across the country as part of efforts to unlock Nigeria’s estimated 200 trillion cubic feet of gas reserves.
READ ALSO: NADDC DG Hypes CNG, Urges Stakeholders Collaboration
Adama said the Fund had reached Final Investment Decisions (FID) on 31 projects and supported the construction of more than 200 pieces of gas infrastructure in the past 18 months.
According to him, 10 of the projects have already been commissioned, while another six to eight gas processing plants, as well as more than 50 CNG mother and daughter stations, are expected to be commissioned between October and December 2026.
Established under the Petroleum Industry Act (PIA) 2021, the MDGIF was created to de-risk investment in midstream and downstream gas infrastructure and catalyse private sector participation.
Adama said the Fund was deliberately adopting a different financing model by providing “patient capital through equity ownership rather than traditional loans or grants.”
He explained that the strategy was designed to make capital-intensive gas projects more bankable, particularly in an environment where high commercial lending rates make long-term infrastructure financing difficult.
He stressed that greater utilisation of gas was critical to Nigeria’s energy transition, noting that gas offers a cheaper alternative fuel for automobiles and has significant potential to meet other energy needs.
Also speaking at the event, Executive Director, Finance and Accounts, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Mr. Abiodun Adeniji, expressed optimism that the planned African Energy Bank would help address the financing challenges confronting the continent’s energy sector.
Adeniji said the bank could provide financing at rates closer to those available in international markets, rather than the double-digit interest rates typically charged by Nigerian commercial banks.
He also called for stronger funding support for the MDGIF, arguing that adequate capital would enable the Fund to play a more effective role in developing the country’s gas infrastructure.
The Fund’s intervention has already attracted significant capital into gas infrastructure projects. In May 2026, the MDGIF was reported to have committed more than N430 billion to gas infrastructure projects nationwide amid the Federal Government’s commissioning of four flagship Compressed Natural Gas (CNG) projects.
At the time, Hussaini Basaka, Director-in-Charge of Project Management at the MDGIF, said the Fund’s investment had helped catalyse substantially larger private sector investments.
“In ballpark terms, the MDGIF has invested over N430 billion and catalysed about ten times that amount, about N1.6 trillion, in investments,” Basaka said.
He disclosed that, for one of the projects in Abuja, the MDGIF took a 45 per cent equity stake through a substantial capital commitment.
Beyond infrastructure financing, the Federal Government has also introduced interventions aimed at accelerating the adoption of CNG as an alternative transport fuel.
In March 2025, the government launched a N2.5 billion credit scheme to support vehicle conversions to CNG and the local manufacturing of conversion kits.
The Presidential Compressed Natural Gas Initiative (PCNGi) said the scheme was designed to reduce transportation and energy costs, expand gas-based mobility and provide financial relief to Nigerians.
Lagos State Governor, Babajide Sanwo-Olu, has called for stronger international investment partnerships as he pitched Lagos as a strategic gateway for global investment into Africa.
Sanwo-Olu made the call while speaking at the Global Africa Business Initiative’s Unstoppable Africa 2026 in New York, where global business leaders, investors, policymakers and heads of government gathered to discuss ways of strengthening African businesses and expanding the continent’s economies.
The 2026 edition of the event was held on September 20 and 21 at the New York Marriott Marquis, on the sidelines of the opening of the 81st United Nations General Assembly.
SEE ALSO: ‘A Nation Cannot Escape the Bill’ — Atiku Questions Tinubu’s Third UNGA Absence
The governor highlighted Lagos’ large population, expanding market, infrastructure needs, entrepreneurial ecosystem and strategic position as key factors that create opportunities for investors seeking to participate in Africa’s economic growth.
Sanwo-Olu stressed that Lagos’ growing global relevance should translate into tangible benefits for residents through investments in infrastructure, transportation, healthcare, enterprise development and other sectors.
He said the state remained open to international capital, strategic partnerships and private-sector participation, with the goal of building partnerships capable of delivering measurable economic value across Lagos.
According to the governor, Lagos is pursuing a development agenda that combines long-term economic growth with efforts to address the everyday needs of its residents while creating an environment where businesses can establish, expand and compete.
A key feature of the governor’s presentation was the promotion of Invest Lagos, the flagship investment promotion initiative of the Lagos State Ministry of Commerce, Cooperatives, Trade and Investment.
The engagement followed the successful Invest Lagos 3.0 summit held in Lagos in June under the theme, “Lagos: The Business Gateway to Africa.”
The summit brought together global investors, policymakers, development institutions and business leaders to explore opportunities in infrastructure, manufacturing, technology, trade, finance and the creative economy.
Sanwo-Olu’s participation at Unstoppable Africa 2026 further provided an international platform for Lagos to showcase its investment opportunities and seek partnerships aimed at attracting global capital to the state.
The Nigerian equities market closed Friday’s trading session on a negative note, with the All-Share Index declining by 0.38 per cent to close at 252,113.41 points.
According to the Nigerian Exchange Group’s Daily Market Snapshot for Friday, September 25, 2026, equity market capitalisation stood at ₦163.65 trillion, representing a 0.01 per cent decline.
ALSO READ: NGX Invest Expands Primary Market Access with WhatsApp Subscription Channel
The fixed-income market capitalisation also fell by 0.01 per cent to ₦58.74 trillion, while the market capitalisation of Exchange-Traded Products (ETPs) declined by 2.15 per cent to ₦57.77 billion.
Meanwhile, the top five gainers were led by a stock that rose 10 per cent to close at ₦17.60, followed by CMFC, which gained 9.76 per cent to ₦3.26. Briscoe rose 9.74 per cent to ₦10.70, ABC Transport gained 9.68 per cent to ₦5.10, while Royal Exchange increased by 9.09 per cent to ₦1.08.
The figures were contained in the NGX Daily Market Snapshot released at the close of trading on Friday.
More than 100 Chinese original equipment manufacturers are being wooed for investment, technology and manufacturing capacity to aid growth in Nigeria’s oil and gas industry.
The Nigerian Content Development and Monitoring Board (NCDMB) made the disclosure through its Director, Project Certification and Authorisation Division and Senior Technical Adviser to the Executive Secretary, Austin Uzoka.
This was detailed in a statement issued by the Board which stated that Uzoka was representing the Executive Secretary, Felix Ogbe, at the 15th China Shale Oil and Gas Summit in Chengdu, China, where he made the disclosure.
READ ALSO: NIPCO Moots $3bn Gas Project with Local Construction
According to Ogbe, the board was seeking to move the relationship between Nigerian oil and gas operators and Chinese manufacturers beyond the conventional buyer-seller model to investment, manufacturing, technology transfer and integration into global supply chains.
He said the Nigerian Oil and Gas Content Development Act (NOGCDA) guaranteed patronage for oil and gas equipment manufacturing facilities established in Nigeria, adding that such investments could also provide access to opportunities across the Gulf of Guinea.
“We are looking beyond the traditional buyer-seller relationship. What can we build together? We want Chinese companies to see Nigeria not simply as a market for their products, but as a strategic investment destination, a platform for manufacturing and technology development, and a gateway to opportunities across the wider African market,” he said.
He highlighted the Nigerian Oil and Gas Park Scheme (NOGPS) as a platform for Chinese original equipment manufacturers to establish manufacturing, assembly and service operations in Nigeria.
He said the scheme would provide opportunities for technology transfer, technical arrangements and the integration of Nigerian businesses into the supply chains of Chinese companies.
The ES also identified China’s capabilities in manufacturing, engineering, technology and energy infrastructure as areas that could support Nigeria’s industrial development.
“China has developed tremendous capabilities in manufacturing, engineering, technology and energy infrastructure. We want to explore how those capabilities can be connected with the opportunities that exist in Nigeria, for mutual benefits,” he added.
Nigeria’s local content policy had evolved from increasing Nigerian participation in oil and gas projects to a broader industrial development agenda focused on manufacturing, technology ownership and global competitiveness, he pointed out.
“Nigeria’s local content journey has evolved significantly since the local content law was enacted in 2010. What began primarily as an effort to increase Nigerian participation in the oil and gas industry has developed into a broader industrial development agenda focused on building capabilities, deepening manufacturing, promoting technology ownership and positioning Nigerian businesses to compete within regional and global markets,” he observed.
The engagement formed part of Nigeria’s participation in the 15th China Shale Oil and Gas Summit, held from September 20 to 23 at the Chengdu Century City International Conference Centre.
The summit, themed ‘Empowering Efficient and Green Development via Intelligent Technologies, Innovating to Lead the Shale Oil and Gas Revolution’, provided a platform for Nigerian oil and gas stakeholders to showcase investment opportunities in manufacturing, technology and oil and gas services.
According to the NCDMB, several Chinese OEMs expressed interest in exploring business relationships with Nigerian companies and participating in the country’s growing oil and gas manufacturing ecosystem.
In her closing remarks, the General Manager, Midstream, PCAD, Ms Lekoma Phimia, urged stakeholders to build on the connections established at the session to develop commercially viable and sustainable business relationships.
The NCDMB also used the exhibition to provide prospective investors and industry players with information on Nigeria’s oil and gas sector, local content opportunities and avenues for establishing operations in the country.
The board said the Chengdu engagement was part of efforts to expand Nigeria’s international industrial connections and advance the objectives of the Nigerian Oil and Gas Industry Content Development Act (NOGICDA).
It added that its focus was to move the local content agenda from participation to capability, manufacturing, and ultimately technology ownership and regional competitiveness.
Fire Breaks Out In Kubwa As Vehicle Crashes Into Gas Station
‘Obi Did Not Loot A Kobo’ — Obiaraeri Compares Peter Obi, Akpabio’s Records
‘Where Is Nigeria’s President?’ — Obi Questions Tinubu’s Third Straight UNGA Absence
Africa Can’t Bear Global Burdens Without Equal Voice — Shettima
Bangkok Underwater: Nearly 4,900 Evacuated as Floods Hit Thailand Capital
2027: Atiku’s Presidential Bid Is ‘Just a Joke’ — Tinubu’s Aide
Trump’s Family Unveils New Cryptocurrency Platform
Senate Denies Receiving Petitions Against Tinubu’s Ambassadorial Nominees
Dangote Cement Lights Up Benue Host Communities With CSR Initiatives
Reps Recommend 3-year Jail Term For Aviation minister
Tems Sets New Record On Billboard Hot 100 Chart
