The African Export-Import Bank (Afreximbank) and the Midstream and Downstream Gas Infrastructure Fund (MDGIF) have signed a landmark memorandum of understanding (MoU) to mobilise up to $500 million over four years for the development of Nigeria’s midstream and downstream gas infrastructure.
The agreement, signed on the sidelines of the fourth Intra-African Trade Fair (IATF2025), will create a collaborative framework to modernise and expand the country’s gas sector. Mrs Helen Brume, Director and Global Head of Project and Asset-Based Finance, signed on behalf of Afreximbank, while Mr. Oluwole Adama, Executive Director, signed for MDGIF.
Under the MoU, both institutions will jointly identify eligible projects and structure financing through a mix of senior debt and equity contributions. The collaboration will prioritise pipelines, processing facilities, and other critical infrastructure to unlock Nigeria’s gas potential.
Key areas of cooperation include joint identification and prioritisation of gas projects, with annual targets set to track progress and ensure investment goals are met.
Afreximbank will provide senior debt financing through direct funding and credit risk guarantees, working alongside local financial institutions to support project finance transactions.
Other areas of collaboration include the establishment of a dedicated support, either through funding or support framework, for feasibility studies, legal structuring, environmental assessments and other preparatory activities for bankable gas projects.
MDGIF will complement this with equity contributions, helping to build balanced capital structures that attract further investment.
The partnership will also promote Nigeria’s gas initiatives on Afreximbank’s platforms, including the Intra-African Trade Fair, to boost visibility and stakeholder engagement.
In addition, both institutions will develop programmes to strengthen MDGIF’s capacity in project structuring, risk management and innovative financing.
The Executive Vice President, Intra-African Trade and Export Development at Afreximbank, Mrs Kanayo Awani, described the deal as “a significant milestone in accelerating Africa’s economic transformation.” She said the collaboration would unlock new opportunities for inclusive growth and sustainable development in Nigeria and across West Africa.
The agreement aligns with the Petroleum Industry Act and President Bola Ahmed Tinubu’s agenda to harness gas for industrialisation, noted Adama. “This collaboration enables us to mobilise capital, expand infrastructure, reduce flaring, and deliver sustainable energy solutions that power industries, create jobs, and improve livelihoods,” he said.
Nigeria’s Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, who witnessed the signing, added that, “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.”
