Nigeria’s Gas Fund Says Public Capital Pulled In 2.4 Times as Much Private Money

Nigeria · INVESTMENT

Nigeria’s gas fund says N671bn of public money, about US$505 million, drew in roughly N1.6tn of private investment, about US$1.2 billion.

Nigeria’s Midstream and Downstream Gas Infrastructure Fund, known as MDGIF, says it used N671bn of public capital, about US$505 million. It says that drew about N1.6tn of private investment, about US$1.2 billion, across 31 projects and 205 assets.

How the MDGIF gas fund works

The MDGIF was created under Section 52 of Nigeria’s Petroleum Industry Act 2021. Its mandate is to make equity investments, de-risk projects and crowd in private capital for gas infrastructure.

The fund targets the middle of the gas value chain, where private lenders often find the risk too high. By taking an equity position first, it aims to make projects bankable.

MDGIF gave the figures on 25 September 2026 at the annual conference of the Association of Energy Correspondents in Abuja. Executive Director Oluwole Adama was represented by Elvis Duruji, its director of strategy.

What the money is buying

The portfolio could add about 475 million cubic feet of gas a day once fully running. Nigeria’s domestic supply is about 1.9 billion cubic feet a day.

The fund has not published a full breakdown by asset type. It does name 20 compressed natural gas mother stations, more than 80 daughter stations and gas equipment at 20 universities.

Four flare-gas partnerships are projected to monetise 444 million cubic feet a day. MDGIF puts the associated emissions saving at about 2,845 tonnes a day.

The political economy behind the push

Nigeria has been trying to shift from a crude-oil export model to one that monetises gas at home. The Petroleum Industry Act 2021 created the legal framework for that shift, and the MDGIF is its main financial instrument.

The approach is deliberately different from grants or pure debt. Public money takes first-loss or equity positions, which lowers the risk for private partners without handing out subsidies.

On 15 September 2025 Afreximbank and MDGIF signed a memorandum to mobilise up to US$500 million over four years. It is a framework, not a committed facility.

Who gains and who loses

Private investors gain a public partner that absorbs early-stage risk. The Nigerian state gains infrastructure without carrying the full cost on its balance sheet.

Gas users, including power plants and industrial firms, stand to benefit from more reliable supply. Communities near flaring sites could see lower emissions if associated gas is captured instead of burned.

The main risk is execution. These are MDGIF’s own figures for capital mobilised, not audited disbursements, and no breakdown has been published.

The wider scramble for African gas

Nigeria’s gas build-out sits inside a broader competition for energy finance across Africa. African and non-African lenders are both positioning for a share of the continent’s gas infrastructure pipeline.

Many African governments are asking how to finance energy projects without overloading sovereign debt. Public de-risking is one answer, and if it works it could travel.

Across the continent, Africa: The New Scramble, gas, minerals and infrastructure finance are reshaping old alliances.

What to watch next

The Afreximbank memorandum runs over four years. Whether it converts into signed facilities is the early test of whether the fund can scale.

The Nigeria Extractive Industries Transparency Initiative has put the gas investment gap at US$20 billion a year for ten years. Against that, the fund’s portfolio is a start rather than an answer.

The number to watch is the pace of commissioning. Ten assets are running out of 205, and 127 components are still under construction.

Frequently Asked Questions