Nigeria requires an estimated $20 billion in investment every year to address infrastructure shortfalls in its gas sector, according to the Midstream and Downstream Gas Infrastructure Fund (MDGIF).

Speaking at the Nigerian Oil and Gas (NOG) Conference in Abuja, MDGIF Executive Director, Oluwole Adama, said the country would need about $400 billion over the next 10 years to develop the infrastructure necessary to strengthen the domestic gas market and provide more affordable, cleaner energy for Nigerians.

Adama said the fund is working to attract banks and other financial institutions to support gas infrastructure projects and unlock large-scale investments in the sector.

He noted that while economic growth is measured by increased investment and output, economic development goes beyond that by creating jobs, reducing energy poverty, improving industrial productivity and raising the standard of living.

According to him, investing in domestic gas infrastructure will not only boost gas production and consumption but also enable industries to operate more efficiently and competitively.

Adama also said financing is often not the biggest obstacle facing gas projects. Instead, he explained that projects must first become bankable before investors are willing to provide funding.

He identified poor project preparation, uncertain market demand, inadequate infrastructure and the allocation of regulatory, commercial, foreign exchange and political risks as the major barriers slowing investment in the sector.

He added that addressing these challenges would improve investor confidence and help attract the capital needed to accelerate the development of Nigeria’s gas infrastructure.