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MDGIF Investment Policy Statement

Page 20 of 34

Applicable to: MDGIF Project Promoters
Equity Partners
MDGIF INVESTMENT POLICY STATEMENT (MIPS)

Code: MDGIF Guide 1001 - 2024

Effective Date: 17th May 2024

This document is a property of the Midstream and Downstream Gas Infrastructure Fund. All rights reserved.
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4 INVESTMENT POLICY AND GUIDELINES
4.1
Investment Principles
4.1.1 Alignment with National Strategic Development Goals
The MDGIF shall align with government critical components of achieving energy security,
diversified energy mix, drive economic growth and sustainable development.
The Fund shall:
i.
Ensure that the investments to be made have significant development impact and
are complementary to the priority projects and sectors, as identified by the Federal
Government. Specifically, reference must be made to the government’s policies and
programs such as ‘National Gas Policy’, ‘Decade of Gas’, ‘Gas Master Plan’, National
Economic Sustainability Plan, P-CNGi etc.
ii.
Support projects that would enhance the production and consumption of natural gas
in Nigeria, leading to considerable reduction in the importation of such gas products
or derivatives.
iii.
Stimulate massive infrastructural development, growth in industrial hubs, enhance
employment, and create a multiplier effect on the domestic economy in Nigeria.
iv.
Support gas flare commercialization and carbon reduction projects based on gas
utilization.
v.
Take on board projects with substantial capacity and scope to stimulate investments
in high-risk projects that would meet national strategic goals and objectives.
4.1.2 Long-term Focus with Clear Exit Strategy
i.
All investments by MDGIF shall be on equity participation (not core-investor) to
catalyse the business.
ii.
Equity investments shall be based on received proposals from project promoters or
MDGIF- initiated partnership in line with the MDGIF objectives.
iii.
The MDGIF shall have a long-term investment horizon to enable investments in gas
infrastructure projects with long gestation periods to improve bankability and
attractiveness for other investors.
iv.
The MDGIF can invest Interest and other incomes accruing to the equity investment
of MDGIF in low-risk investments with optimal return for strategic quick wins and re-
investments.