… seeks stakeholders’ collaboration to unlock potential of Nigeria’s gas sector
Oredola Adeola
Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas), has revealed that the Midstream and Downstream Gas Infrastructure Fund (MDGIF) is more than just a fund, but a powerful catalyst poised to drive down the costs of Liquefied Petroleum Gas and Compressed Natural Gas.
The Minister who is also the Chairman of the Council gave the charge in his address during the inauguration meeting of the members of the governing council of Midstream Downstream Gas Infrastructure Fund (MDGIF) on Friday in Abuja.
According to the Minister, the MDGIF is not merely a fund, but it is a vehicle for progress, a conduit for prosperity, and a catalyst for sustainable development which would in turn lead to a tangible reduction in the price of Liquefied Petroleum Gas, and Compressed Natural Gas, benefiting particularly the low-income earners in the society.
Ekpo said, “I call upon all stakeholders, both domestic and international, to join hands with us in this noble endeavour in line with the recently signed executive orders on petroleum sector reform to boost investment in the oil and gas sector.
“Let us work together to unlock the vast potential of Nigeria’s gas sector and propel our nation to new heights of economic prosperity.”
Ekpo said the establishment of the MDGIF came at a critical juncture in Nigeria’s energy landscape to support the Midstream and Downstream Gas infrastructure which aligns seamlessly with the national aspirations.
The Chairman of the Council stated that the MDGIF represents not just a financial instrument, but a symbol of Government’s dedication to fostering an environment conducive to private sector participation and international collaboration.
Ekpo who was mindful of the challenges that lie ahead, expressed optimism that those challenges are opportunities in disguise and with strategic planning, prudent governance, and collaboration, Nigeria would overcome them.
He called on all stakeholders, both domestic and international to join hands with the country in these noble endeavours in line with the recently signed Executive Orders on Petroleum Sector Reforms to boost investment in the oil and gas sector.
Ekpo expressed his gratitude to President Bola Tinubu for entrusting him with the responsibility of chairing the MDGIF.
He opined that with dedication of the Governing Council and support of all stakeholders, a success story would be written for generation to come.
Engr. Farouk Ahmed, Authority Chief Executive, Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and member of the Council, who spoke on behalf of other members promised that they would not leave any stone unturned towards ensuring that the Council succeeds on its assigned mandates.
President Bola Tinubu recently approved the appointment of a Governing Council of the Midstream and Downstream Gas Infrastructure Fund (MDGIF) to be domiciled in the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The Petroleum Industry Act (PIA) provides for the imposition of 0.5% levies for the authority fund and the Midstream and Downstream Gas Infrastructure Fund (MDGIF) on the wholesale price of petroleum products and natural gas sold in Nigeria, with the levy becoming due within 21 days of sale.
The Federal High Court in Abuja, recently, affirmed the NMDPRA right to enact regulations related to midstream and downstream petroleum operations, including the imposition of levies as per the PIA.
Advisors Reports gathered that the fund is expected to be disbursed to help bridge the huge infrastructure deficit which has been a major hindrance towards gas distribution and utilisation in the country, especially in the wake of the ‘Decade of Gas’ and energy transition policies of the nation.
Meanwhile, months after the initiation of the fund, the NMDPRA has faced scrutiny for not disclosing the status of the fund, which remains shrouded in secrecy due to non-disclosure by the custodian and manager of the fund.
The level of access to the fund and disbursement for projects has not been made open for public awareness and scrutiny.
