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, 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, aims to promote, develop, and improve gas infrastructure in the country through private‑sector‑led delivery models.
Under the MoU, Afreximbank and MDGIF will work together to mobilise up to US$500 million over a four‑year period to support midstream and downstream gas projects. The investment will be structured as a blend of senior debt and equity contributions, with the goal of accelerating the modernisation and expansion of Nigeria’s gas sector. Afreximbank may provide direct financing and credit‑risk guarantees for project‑finance transactions, collaborating with local financial institutions, while 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 required for bankable gas projects. Annual pipeline targets will be set to ensure that investment goals are met and that eligible projects are identified and prioritised.
Mrs. Kanayo Awani, Executive Vice President of Intra‑African Trade and Export Development at Afreximbank, said the collaboration will accelerate Africa’s economic transformation by combining Afreximbank’s expertise in trade and project finance with MDGIF’s national investment reach. Oluwole Adama noted that the partnership aligns with President Bola Ahmed Tinubu’s agenda to harness Nigeria’s gas resources for industrialisation and economic growth. The Minister of State for Petroleum Resources (Gas) witnessed the ceremony and highlighted that the agreement will unlock the potential to mobilise up to US$500 million over the next four years, creating a pipeline of bankable projects supported by feasibility studies, project preparation, and risk‑sharing mechanisms.
The Afreximbank‑MDGIF collaboration is expected to speed up investment in pipelines, processing facilities, and other gas infrastructure, reduce flaring, deliver sustainable energy solutions, and improve livelihoods across Nigeria. By signing the MoU, the two entities have taken a crucial step toward developing Nigeria’s gas infrastructure and promoting economic growth in the region.
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