The Midstream and Downstream Gas Infrastructure Fund, MDGIF, says it has leveraged N671 billion in public funds to attract N1.6 trillion in private investment into gas infrastructure projects across Nigeria.
Oluwole Adama, Executive Director of MDGIF, disclosed this at the 2026 Annual Conference of the Association of Energy Correspondents Abuja, AECAF, in Abuja. He was represented at the event by Elvis Duruji, Director of Strategy, Research and Deal Origination. The fund said its intervention currently covers 31 projects and 205 infrastructure assets across the country. When completed and fully operational, the projects are expected to deliver about 475 million standard cubic feet of gas daily to the domestic market.
MDGIF said its strategy is to use public funds to reduce the risks associated with gas infrastructure projects and make them attractive to private investors and lenders. The fund said high financing costs, inadequate infrastructure, regulatory uncertainty, and technical and commercial risks have continued to limit investment in Nigeria’s midstream and downstream gas sector.
According to MDGIF, its N671 billion public investment has helped attract private capital worth about 2.4 times its contribution. Duruji said the fund was created to serve as a catalyst for investment rather than simply provide financing for projects.
“We have been able to use our N671 billion to attract capital investors of N1.6 trillion. So, this is actually the whole objective of the PIA.”
He explained that MDGIF identifies the risks affecting projects and works to reduce them to levels that can encourage private investors to commit funds. The fund said projects in its portfolio could increase Nigeria’s domestic gas supply by about 25 percent if completed, using current domestic production of roughly 1.9 billion standard cubic feet per day as the benchmark.
MDGIF is also supporting efforts to commercialise gas that would otherwise be flared. The fund said it has partnered with four flare out awardees whose projects are expected to monetise about 444 million standard cubic feet of gas daily. These projects are also expected to reduce gas emissions by about 2,845 tonnes daily. The fund has also partnered with 30 unincorporated joint ventures and an equipment leasing company to expand compressed natural gas infrastructure.
The partnerships cover 20 CNG mother stations and more than 80 CNG daughter stations, while another 75 daughter stations are being financed through the equipment leasing arrangement. One of the projects highlighted by the fund is a five million standard cubic feet per day mini LNG plant being developed by Topline Limited in Delta State.
According to MDGIF, the project had spent three years seeking financing before the fund’s equity investment helped unlock an InfraCredit guarantee.
“That particular project had gone around looking for funds for three years but couldn’t secure any. After partnering with MDGIF, the facility is now expected to be commissioned within the next two to three months,” Duruji said.
Other interventions include CNG infrastructure across 20 universities, as well as projects by Ibile Oil and Gas in Lagos and Rolling Energy in Abuja. MDGIF said its broader objective is to absorb some of the early risks associated with gas projects and turn them into bankable investments.
“The missing link is vulnerability. MDGIF’s catalytic role is to price and absorb part of the early risk, turning uncertainty into bankability, bankability into private investment, and investment into operating gas infrastructure,” Duruji said.
The fund’s intervention comes as Nigeria seeks to expand domestic gas use, improve energy infrastructure and attract more private capital into the sector.
