Nigeria needs $20bn annually to bridge gas infrastructure deficit, says Sylva

August 31

08:31 2022

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The federal government says more than $20 billion is required to bridge the gas infrastructure deficit.

Timipre Sylva, minister of state for petroleum resources, disclosed this at the inauguration of the nine-member governing council of the midstream and downstream gas infrastructure fund (MDGIF).

Sylvia said gas infrastructure deficit had led to poor gas production, gas flaring and low domestic gas utilisation across the country.

He, therefore, urged the council to work assiduously to mobilise funds needed for the provision of critical infrastructure in the industry.

“It is estimated that more than $20 billion annually will be required over the next 10 years to bridge these gaps,” he said.

“This will drive economic development and prosperity for our people, our nation and value to our partners, by the Petroleum Industry Act 2021 (PIA).”

According to the minister, the MDGIF, established under Section 52 of the PIA, resides as a directorate in the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

He said MDGIF would be expected to benefit from its internal reporting, operational and organisational processes.

He added that the council would supervise and make investment decisions for the Fund.

In March 2021, President Muhammadu Buhari declared January 1, 2021, to December 31, 2030, as “The Decade of Gas Development for Nigeria”, primarily to set the road map towards a gas-powered economy by 2030.

Sylva added that the federal government had put in place several programmes towards achieving the decade of gas initiatives and developing the huge gas potential of the country.

He, however, said the missing link was the absence of the basic gas infrastructure to help realise the objectives.

The minister pf petroleum will serve as the council’s chairman while the executive director of MDGIF acts as chief executive officer.

Other members include Scholastica Nnaji, representing the Central Bank of Nigeria (CBN), Victor Omata, representing federal ministry of finance and Farouk Ahmed, chief executive, NMDPRA.