The African Export-Import Bank (Afreximbank) and the Midstream and Downstream Gas Infrastructure Fund (MDGIF) have signed a memorandum of understanding (MoU) to mobilise up to $500 million over four years for gas infrastructure projects in Nigeria.
The agreement, signed on the sidelines of the fourth Intra-African Trade Fair (IATF2025), seeks to accelerate the expansion and modernisation of the country’s midstream and downstream gas sector through a mix of senior debt and equity contributions. The MoU was signed by Mrs. Helen Brume, Director and Global Head – Project and Asset Based Finance at Afreximbank, and Mr. Oluwole Adama, Executive Director of MDGIF.
Under the deal, both institutions will collaborate to identify and prioritise eligible projects, provide project finance through senior debt, and support preparatory activities such as feasibility studies, environmental assessments, and legal structuring. MDGIF is also expected to contribute equity financing to complement Afreximbank’s lending.
Promotion of projects through Afreximbank’s platforms, including the IATF, and structured capacity-building for MDGIF in risk management and project structuring form part of the collaboration.
“This MoU marks a significant milestone in our shared commitment to accelerating Africa’s economic transformation. By combining Afreximbank’s deep expertise in trade and project finance with MDGIF’s national investment reach, we are poised to unlock new opportunities for inclusive growth and sustainable development across Nigeria and, potentially, across the West Africa sub-region,” said Mrs. Kanayo Awani, Executive Vice President – Intra-African Trade and Export Development at Afreximbank.
She added: “We stand ready to work with the MDGIF in advancing the development of gas infrastructure projects in Nigeria which will add value to the country’s natural resources. This intervention is also important as it aligns with Afreximbank’s Industrialisation and Export development agenda.”
MDGIF’s Mr. Adama said the partnership aligns with the Petroleum Industry Act and President Bola Ahmed Tinubu’s agenda to harness Nigeria’s gas resources for industrialisation.
“Anchored on our statutory mandate under the Petroleum Industry Act and aligned with President Bola Ahmed Tinubu’s agenda to harness Nigeria’s gas resources for industrialisation and economic growth, this partnership with Afreximbank enables MDGIF to mobilise capital, expand critical midstream and downstream infrastructure, reduce flaring, and deliver sustainable energy solutions that power industries, create jobs, and improve livelihoods across Nigeria,” he said.
The Nigerian government also welcomed the collaboration. The Minister of State for Petroleum Resources (Gas), who witnessed the signing, noted: “Through this partnership, we are unlocking the potential to mobilise up to USD 500 million over the next four years for Nigeria’s gas infrastructure. More importantly, we are creating a pipeline of bankable projects, supported by feasibility studies, project preparation, and risk-sharing mechanisms, that will accelerate the pace of investment in pipelines, processing.”
The signing took place during the IATF2025, which attracted more than 112,000 participants, over 2,100 exhibitors, and generated in excess of $48 billion in trade deals.
