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Nigerian govt sets up council to attract $575bn gas investments

Published

8 months ago

March 10, 2024

With the aim of attracting $575 billion in investments into the Nigerian gas industry, the Nigerian government has established the Governing Council of the Midstream and Downstream Gas Infrastructure Fund (MDGIF).

Established to finance infrastructure initiatives aimed at enhancing Nigeria’s natural gas transportation, midstream processing, and downstream use, the MDGIF is administered by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, and its operations are overseen by the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, who also chairs the governing council.

The MDGIF’s objectives include, but are not limited to, luring in over $575 billion in investments to grow Nigeria’s gas industry and building out the country’s midstream and downstream gas infrastructure to strengthen its gas market.

The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo told the seven members of the council during their inaugural meeting in Abuja on Saturday, adding that “the President’s confidence in my ability to chair the MDGIF is not just a personal honour but a clarion call to service for all of us.”

He added, “It reflects the belief that, together, we can harness the vast potential of our nation’s gas resources to drive innovation, create jobs and contribute significantly to the overall development of our beloved country.”

The creation of the MDGIF, according to Ekpo, occurred at a pivotal moment in Nigeria’s energy landscape as the nation works to achieve sustainable development and economic diversification.

According to him, the MDGIF is more than just a financial tool; it also symbolises the government’s commitment to creating an atmosphere that encourages involvement from the private sector and cross-border cooperation.

“Our goals are ambitious, but so is our determination. With the collective expertise and commitment of the governing council, as well as the support of our stakeholders, we aim to drive innovation, create employment opportunities, and ensure energy security for our nation.

“The MDGIF is not merely a fund; it is a vehicle for progress, a conduit for prosperity, and a catalyst for sustainable development. This alignment should, in turn, lead to a tangible reduction in the prices of LPG and CNG, benefiting particularly the low-income earners in our society,” Ekpo stated.

Nigeria produces a lot of hydrocarbons. Revenue from oil and natural gas is its main source of foreign exchange and a significant contributor to the national budget.

According to a report released in March 2023 by the US Energy Information Administration, Nigeria possesses the largest natural gas reserves in Africa. In the June 2022 Statistical Review of World Energy report, she was ranked sixth among all liquefied natural gas exporters worldwide in 2021.

Related Topics:Featured gas investments Nigeria

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Food prices drive second straight monthly hike in Nigeria’s inflation

Published

3 days ago

November 17, 2024

Ifeoluwa Dada

According to official statistics released on Friday, Nigeria’s inflation rate increased for the second consecutive month in October, rising to 33.88% in annual terms from 32.70% in September, mostly as a result of increasing food costs.

In an attempt to boost economic development and strengthen public finances, President Bola Tinubu devalued the naira and reduced subsidies, which caused inflation to spike in the second half of last year.

As the effects of the naira devaluation started to lessen in July of this year, a slew of hikes in the price of petroleum and devastating floods that destroyed crops once again exacerbated pricing pressures, making the greatest cost-of-living crisis in decades worse in Africa’s most populous country.

According to the National Bureau of Statistics, price increases for basics such as rice, maize, bread, potatoes, and cooking oil prompted food inflation to surge from 37.77% in October to 39.16% year over year.

This year, more than 1.5 million hectares of agriculture have been damaged by torrential rain and floods in 29 of Nigeria’s 36 states, leaving millions hungry and displacing large numbers of people.

In an effort to curb inflation, the central bank has raised interest rates five times this year. On November 26, it is expected to make its final rate decision of the year.

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MTN financial report reveals drop in group service revenue

Published

3 days ago

November 17, 2024

Ifeoluwa Dada

Due to operational difficulties in Sudan and the depreciation of the Nigerian naira, MTN Group, Africa’s largest telecom provider, announced on Thursday an 18.5% decline in service revenue for the third quarter that concluded on September 30.

With 288 million users in 17 African regions, MTN said that its group service revenue dropped from 156.3 billion rand ($6.99 billion) in the same quarter of the previous year to 127.4 billion rand.

Despite stating that “the naira was less volatile on a sequential basis in Q3 than in preceding quarters,” the business reported a 48.7% decline in MTN Nigeria’s income due to the currency’s depreciation.

Due to a stronger Ugandan shilling than the previous year, Uganda’s largest contributor, MTN South Africa (MTN SA), expanded by a meagre 3.3%.

Due to “subscriber registration regulations in Nigeria and a decline in users in Sudan, where the conflict has displaced millions of people,” the business reported that its subscriber base increased by 1.6% to 288 million.

Given the higher demand in Nigeria despite the legal obstacles, MTN plans to increase its capital expenditures, which it expects would total between 28 and 33 billion rand for the entire year.