The Governing Council of the Midstream and Downstream Gas Infrastructure Fund (MDGIF) was established by the Federal Government on Tuesday.
The nine-member council was inaugurated in Abuja by Chief Timipre Sylva, Minister of State for Petroleum Resources, in order to close a significant gap in the government's efforts to grow the gas sector.
He gave members strict instructions to mobilise funding for the construction of vital gas sector infrastructure.
According to a statement by Horatious Egua, his special adviser on media and communications, Sylva claimed that President Muhammadu Buhari's commitment to repositioning the energy sector was demonstrated by the inauguration.
“It will drive economic development and prosperity for our people, our nation and value to our partners, in accordance with the Petroleum Industry Act 2021 (PIA),” he added.
The president of Nigeria, Muhammadu Buhari, named the period from January 1, 2021, to December 31, 2030, as "The Decade of Gas Development for Nigeria," principally to lay out the course for a gas-powered economy by that year.
According to Sylva, the Federal Government has established many efforts to carry out the decade of gas projects and harness Nigeria's enormous gas potential.
But he claimed that the lack of the fundamental gas infrastructure needed to realise the goals was the weak link.
According to the minister, the lack of gas infrastructure in the nation is a major factor in the low gas output, gas flaring, and low domestic gas utilisation.
“It is estimated that more than 20 billion dollars yearly will be required over the next ten years to bridge these gaps,” he said.
He claims that the Nigerian Midstream and Downstream Petroleum Regulatory Authority's Directorate is where the fund, which was established in accordance with Section 52 of the PIA, is housed (NMDPRA).
The fund will be anticipated to gain from the Authority's internal reporting, operational, and organisational processes as a Directorate inside it, the minister stated.
He continued by saying that the council will oversee and choose the fund's investments in accordance with the PIA, 2021.
The Governing Council is given authority to oversee and select investments for the Fund under Section 52(3) of the PIA.
Sylva asked the Council members to act quickly to bring gas infrastructure closer to the populace so they may take advantage of government policies in this area.
“There is an urgent need to focus on the major strategic plans and key initiatives to enable government to set a clear trajectory to achieving the noble objectives of establishing the fund,” he said.
The Council's mandate includes recognising important and pertinent parties that can boost household use of natural gas, LPG, and autogas.
They also involve creating a plan for turning gas into a product with added value in Nigeria.
The Executive Director MDGIF serves as the Council's CEO, while the Minister of State for Petroleum Resources serves as its chairman.
Dr. Scholastica Nnaji, who represents the Central Bank of Nigeria (CBN), Victor Omata, who represents the Federal Ministry of Finance, and Farouk Ahmed, CEO of NMDPRA, are other council members.
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