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FG signs MoU with Global Gases Group to build medical oxygen plants in Nigeria

The Federal government has signed a Memorandum of Understanding with Global Gases Group for the establishment of production plants for liquefied medical oxygen in Nigeria.

The Minister of Health and Social Welfare, Prof. Muhammad Ali Pate disclosed this in a post on his official X handle where he said that the objective of the partnership was to ensure a steady supply of high-quality medical oxygens across the country.

According to him, the development syncs with the Nigeria Health Sector Renewal Investment Initiative and President Tinubuโ€™s Executive Orders to open up the health sector value chain.

He noted that these gas plants capable of producing 100 tons of oxygen per day will be established across the north and south of the country.

He said, โ€œWe are excited to announce the signing of a Memorandum of Understanding (MoU) with the Global Gases Group, led by Mr. Deepak Mehta, to establish gas plants for the production of liquefied medical oxygen in Nigeria. This collaboration aims to ensure a steady and reliable supply of high-quality medical oxygen across the country.โ€

โ€œThis partnership is a game changer for Nigeria and the subregion and directly aligns with the Nigeria Health Sector Renewal Investment Initiative (#NHSRII) and the Presidentโ€™s @officialABAT @NigeriaGov Executive Order to unlock the healthcare value chain. The planned facilities, each capable of producing 100 tons per day, will be strategically located in 3 urban clusters located in the North and South of Nigeria in the first phase. This will ensure that medical oxygen is accessible to a broader population, meeting both current and future demands.โ€

Furthermore, the Minister explained that under the tenets of the MoU, the company will complete feasibility studies and business case development, invest in technology, gas storage and distribution infrastructure, and provide necessary training and development for the project.

He noted that the plants will utilise cryogenic air separation technology and would provide sustainable, affordable, accessible, and scalable (SAAS) solution for medical-grade oxygen production.

What you should know

In Nigeria, around 625,000 people die annually from hypoxaemia- an abnormally low concentration of oxygen in the blood related to pneumonia. Among children under 5, this major fatal complication of pneumonia results in 120,000 mortality yearly according to the Federal Ministry of Health in 2022.

According to the Ministry of Health in 2022, there are three main oxygen plant developers in the countryโ€”OGSI, Airsep, and Oxymatโ€”and two cryogenic plants operated by BOC Gases Nigeria. Currently, there are at least 30 oxygen plants of varying capacities established in the country. Of these, 21 are reportedly functioning, 6 have an unknown status, and 3 are non-operational.


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