FG deducts N256.5bn for gas projects in six months
The Federal Government has taken a total of N256.52 billion from revenue distributions to finance gas infrastructure initiatives during the first half of 2025, based on official data from the Federation Accounts Allocation Committee.These deductions were directed into the Midstream and Downstream Gas Infrastructure Fund, established to support projects that improve natural gas transportation, processing, and utilization. Monthly records displayed notable variations, reflecting both surges in project execution and delays in procedures.
An analysis of FAAC reports from January to June indicated that N35.07 billion was deducted in January, which decreased to N31.83 billion in February.
The deductions saw a significant increase of 66.49 percent to N52.99 billion in March, before dropping sharply by 44.91 percent in April to N29.19 billion, marking the lowest monthly figure within this timeframe. In May, the government raised allocations again to N41.27 billion, and in June, it recorded the highest deduction of N66.18 billion, a 60.38 percent increase.
This spike in June aligned with the Federal Government’s signing of over N165 billion in equity investment agreements with ten companies to construct six gas processing plants, three compressed natural gas stations, and one bulk liquefied petroleum gas facility nationwide.
Two of the plants are intended to capture flare gas, furthering Nigeria’s “Decade of Gas” initiative, which aims to enhance supply, minimize flaring, and promote the adoption of clean energy.
Managed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority and chaired by the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, the MDGIF is projected to draw in excess of $575 billion in long-term investments. Initially meant to generate funds through levies on petroleum and natural gas sales, it currently depends on government allocations.
Ekpo referred to the fund as a means for advancement and sustainable development, emphasizing its potential to reduce LPG and CNG prices while generating jobs and enhancing energy security.
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