The Midstream and Downstream Gas Infrastructure Fund (MDGIF) has catalysed about N1.6 trillion in investments across Nigeria’s gas infrastructure sector, supporting projects designed to expand domestic gas supply, improve energy access and strengthen the country’s industrial base.
Established under Section 52 (1) of the Petroleum Industry Act (PIA) 2021 and domiciled within the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the fund operates as a perpetual statutory fund with its own capital base.
According to its latest project profile, MDGIF has approved an estimated N671 billion in funding across its portfolio, while the investments catalysed by the fund have reached N1.6 trillion.
The fund said 31 projects involving 205 infrastructure assets are currently in its portfolio, with 127 projects commenced and 10 already commissioned. Nine stations have also commenced commercial operations.
Its portfolio covers critical areas of the gas value chain, including gas processing plants, pipelines, compressed natural gas (CNG) stations, liquefied natural gas facilities and liquefied petroleum gas storage infrastructure.
The projects comprise 160 CNG daughter stations, 20 CNG/liquefied compressed natural gas mother stations, 13 depots and renewable natural gas facilities, as well as 12 gas processing plants.
MDGIF said about 25.2 percent of the national domestic gas supply baseline represented by its portfolio is positioned to be added to the country’s supply system.
The fund also has a financing framework of $500 million under development, with the Nigeria Sovereign Investment Authority and InfraCredit engaged as part of efforts to mobilise additional long-term capital for gas infrastructure.
Unlike conventional grants or loans, MDGIF operates through minority catalytic equity investments. It said the model enables it to share risk, strengthen capital structures and crowd in private and institutional finance while maintaining commercial discipline.
According to the fund, returns from successful investments are recycled into subsequent projects, creating a revolving mechanism for supporting additional gas infrastructure.
Its funding sources include the 0.5 percent levy on wholesale gas and petroleum prices collected by the NMDPRA, gas flare penalties released through the Nigerian Upstream Petroleum Regulatory Commission, as well as grants and investment income recycled into the portfolio.
MDGIF said its investment horizons range from 18 months to five years, covering the period required for originating, appraising and developing projects under its investment templates.
Among the projects highlighted is an Equipment Leasing Joint Venture Project, designed to support the presidential mandate for 500 infrastructure assets under the National CNG Corridor. The project includes four mother stations and 75 integrated refuelling units currently being executed.
Another flagship project is Topline’s indigenous mini-LNG plant, which MDGIF said attracted eight potential lenders after its 30 percent equity investment unlocked a previously declined InfraCredit guarantee. The plant is expected to be commissioned before the end of the fourth quarter of 2026.
President Bola Ahmed Tinubu, speaking at the commissioning of some MDGIF-supported CNG projects in May 2026, said the projects demonstrate Nigeria’s capacity to improve energy security, reduce transportation costs, create jobs and build a stronger economy from its natural resources.
With about 50 further projects expected to reach pre-commissioning stages before the end of 2026, MDGIF’s portfolio is expected to remain a key component of efforts to expand Nigeria’s gas infrastructure and convert stranded gas resources into productive economic assets.