KEY POINTS
- NMDPRA targets $10bn in gas investments.
- MDGIF has deployed about $300m to de-risk projects.
- Nigeria has more than 210 Tcf of proven gas reserves.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, is targeting up to $10 billion in new gas investments through a funding scheme designed to reduce project risks and attract more private capital into the sector.
NMDPRA chief executive officer Rabiu Abdullahi Umar disclosed this during a panel session at the 2026 Gastech Conference in Bangkok, Thailand.
Umar said the Midstream and Downstream Gas Infrastructure Fund, known as MDGIF, has already deployed about $300 million to support projects and provide the initial capital needed to encourage larger private investments. According to Umar, the MDGIF provides seed capital and equity financing for projects considered important to the development of Nigeria’s gas industry.
The objective is not for government funding to cover the full cost of projects, but to use public capital to reduce risks and make projects more attractive to private investors.
Umar said the $10 billion target represents the additional investment the authority hopes to unlock through the fund’s interventions.
The scheme is expected to support projects across different segments of the gas value chain, including liquefied natural gas, floating LNG, liquefied petroleum gas and compressed natural gas.
Nigeria already has close to $20 billion worth of energy projects at various stages of development, including projects that have reached final investment decisions and others currently under construction.
Gas availability remains a priority
Umar said Nigeria’s energy strategy is centred on ensuring that gas is available, affordable and supported by the infrastructure needed to move it to consumers.
The country has more than 210 trillion cubic feet of proven gas reserves, providing a substantial resource base for expanding domestic consumption and exports.
He said recent developments in global energy markets had reinforced the importance of energy security and the need for countries to maximise the resources available to them.
Umar described gas as Nigeria’s transition fuel as the country seeks to reduce its dependence on oil while limiting reliance on coal.
He also argued that developing countries face different realities from advanced economies when moving toward cleaner energy sources. The NMDPRA chief said the cost of deploying renewable energy infrastructure can be a major challenge for developing economies.
He noted that the cost of installing solar and wind projects can be significantly higher in developing countries, making it difficult to apply a single energy-transition model across different economies.
Umar said expanding gas infrastructure and generation would therefore remain important to meeting Africa’s growing energy needs.
Rising demand from industries, electricity generation and emerging technologies is expected to increase the need for reliable gas supplies and infrastructure. Umar identified infrastructure development and predictable regulation as two major requirements for attracting investment into Nigeria’s gas sector.
He cited the Ajaokuta-Kaduna-Kano gas pipeline as an important project that will help transport gas from southern Nigeria to the North.
He also highlighted the proposed Trans-Saharan Gas Pipeline, which is expected to link Nigeria with Algeria and potentially create another route for supplying gas to European markets.
Cross-border infrastructure, he said, will require stronger regulatory cooperation among participating countries.
Common standards for gas measurement, custody transfer and transportation would help improve the efficiency of regional gas networks and reduce uncertainty for investors. Umar said the NMDPRA was working toward a more open-market framework that would give investors greater certainty about the regulatory environment.
He stressed that investors are less likely to commit capital to projects where regulatory rules are uncertain or subject to significant changes.
Government intervention may also be necessary in some cases to create the conditions required for large infrastructure projects to become commercially viable.
Other participants at the Gastech session similarly stressed the importance of regulatory consistency, energy security and affordability.
Hassan Ozkoc, director of the Association of Mediterranean Energy Regulators, said countries needed regulatory cooperation and common minimum standards to improve the integration of energy systems.
Kavita Ahluwalia of Uniper said Europe was increasingly balancing decarbonisation with energy affordability and industrial competitiveness.
She also argued that gas would continue to play a role in Europe’s energy system and called for global approaches that recognise the different circumstances facing individual regions.
