African Export-Import Bank (Afreximbank) and the Midstream and Downstream Gas Infrastructure Fund (MDGIF) have signed a Memorandum of Understanding (MoU) to develop Nigeria’s gas infrastructure. The agreement aims to promote, develop, and improve gas infrastructure in the country, with a focus on private sector-led delivery models. The MoU was signed on the sidelines of the fourth Intra-African Trade Fair (IATF2025) by Helen Brume, Director and Global Head of Project and Asset-Based Finance at Afreximbank, and Oluwole Adama, Executive Director at MDGIF.
Under the terms of the MoU, Afreximbank and MDGIF will work together to mobilize up to $500 million over a four-year period to support midstream and downstream gas infrastructure projects. The investment will be structured as a blend of senior debt and equity contributions, with a focus on accelerating the modernization and expansion of Nigeria’s gas sector. The partnership will enable the identification and prioritization of eligible projects, with annual pipeline targets to ensure investment goals are met.
Afreximbank will consider providing direct financing and credit risk guarantees to support project finance transactions, working alongside local financial institutions. MDGIF will consider equity contributions to complement Afreximbank’s senior debt, enabling full capital structuring for eligible projects. The partnership will also establish a dedicated support framework for feasibility studies, legal structuring, environmental assessments, and other preparatory activities for bankable gas projects.
The collaboration between Afreximbank and MDGIF is expected to unlock new opportunities for inclusive growth and sustainable development in Nigeria and potentially across the West Africa sub-region. According to Mrs. Kanayo Awani, Executive Vice President of Intra-African Trade and Export Development at Afreximbank, the partnership will accelerate Africa’s economic transformation by combining Afreximbank’s expertise in trade and project finance with MDGIF’s national investment reach.
Oluwole Adama, Executive Director of MDGIF, noted that the partnership aligns with President Bola Ahmed Tinubu’s agenda to harness Nigeria’s gas resources for industrialization and economic growth. The Minister of State for Petroleum Resources (Gas) witnessed the ceremony and noted that the partnership will unlock the potential to mobilize up to $500 million over the next four years for Nigeria’s gas infrastructure, creating a pipeline of bankable projects supported by feasibility studies, project preparation, and risk-sharing mechanisms.
The partnership between Afreximbank and MDGIF is significant, as it will accelerate the pace of investment in pipelines, processing, and other gas infrastructure in Nigeria. The collaboration is expected to reduce flaring, deliver sustainable energy solutions, and improve livelihoods across the country. With the signing of the MoU, Afreximbank and MDGIF have taken a crucial step towards developing Nigeria’s gas infrastructure and promoting economic growth in the region.
