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Sunday XANDERTECH has obtained official numbers showing that in the first half of 2025, the Federal Government, via the Federal Accounts Allocation Committee, withdrew a total of N256.52bn from revenue allocations to finance gas infrastructure projects.
In the midst of the government’s most recent strategy to examine deductions and revenue retention methods, this occurs.
The Midstream and Downstream Gas Infrastructure Fund deductions have a very high degree of month-to-month variation.
The projects, which are spread out across the country’s six geopolitical zones, are part of an effort to fill crucial infrastructure gaps in the gas value chain, according to Sunday PUNCH’s reporting.
To oversee the Midstream and Downstream Gas Infrastructure Fund, President Bola Tinubu established a governing committee in 2023.
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Ekperikpe Ekpo, Nigeria’s Minister of State for Petroleum Resources (Gas), chairs the governing council and ensures that the MDGIF is run well. The fund is overseen by the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
One of the many goals of the MDGIF is to build a stronger gas market in Nigeria by luring investment of over $575 billion into the country’s gas industry. Another goal is to improve the country’s midstream and downstream gas infrastructure.
However, government allocations now back the fund, which was initially intended to solicit investments and receive funding from a tiny fee on the wholesale price of petroleum goods and natural gas sold in the nation.
An analysis of the data from the FAAC report from January to June 2025 showed that gas infrastructure projects were funded with a total of N256.52bn from oil revenue allocations in the first half of the year, with the largest monthly increase of 60.38 percent occurring in June.
According to data compiled by Sunday XANDERTECH, January saw a deduction of N35.07bn, and February saw a decrease of 9.24%, to N31.83bn.
Allotments jumped 66.49 percent to N52.99 billion in March, but then dropped 44.91 percent to N29.19 billion in April.
But in May, government deductions reached N41.27bn, up 41.38%, and in June, they reached N66.18bn, the highest monthly figure during that time, up 60.38%.
April saw the period’s lowest monthly release, amounting to N29.19bn.
A nationwide increase in gas processing plants, compressed natural gas refuelling stations, and liquid petroleum gas storage facilities was the immediate cause of the June spike, which followed the Federal Government’s signing of equity investment agreements with ten companies totalling over N165 billion.
The “Decade of Gas” initiative, which seeks to increase domestic gas supplies, decrease flaring, and promote the adoption of clean energy, has these deals at its core.
A bulk liquefied petroleum gas storage facility, three stations for compressed natural gas, two gas processing plants that will use flare gas, and six other projects were announced on June 2.
As Nigeria works to diversify its economy and achieve sustainable development, Ekpo, speaking at the council’s inaugural meeting, noted that the formation of the MDGIF occurred at a pivotal period in the country’s energy environment.
According to him, the MDGIF is more than just a funding mechanism; it is a representation of the government’s commitment to creating conditions that encourage corporate involvement and global cooperation.