African Export-Import Bank (Afreximbank) and the Midstream and Downstream Gas Infrastructure Fund (MDGIF), on Saturday announced the signing of a landmark Memorandum of Understanding (MoU) for a partnership framework aimed at promoting, developing and improving gas infrastructure in Nigeria.
The MoU which emphasises private sector-led delivery models and aligns with both institutions’ mandates and strategic priorities, will see both Afreximbank and MDGIF mobilising up to US$ 500 million over a four-year period to support midstream and downstream gas infrastructure projects.
The investment, structured as a blend of senior debt and equity contributions,
was signed on the sidelines of the just ended fourth Intra-African Trade Fair (IATF2025) by Afreximbank’s Director and Global Head – Project and Asset Based Finance, Mrs Helen Brume, and the Executive Director of MDGIF, Oluwole Adama.
The deal, considered under both entities’ independent mandates, with a focus on accelerating the modernisation and expansion of Nigeria’s gas sector, will involve the joint identification and prioritisation of eligible projects, with annual pipeline targets to meet investment goals.
Under the arrangement, Afreximbank will consider providing direct financing and credit risk guarantees to support project finance transactions, working alongside local financial institutions, just as there will be a dedicated support, either through funding or support framework, for feasibility studies, legal structuring, environmental assessments and other preparatory activities for bankable gas projects.
On its part, MDGIF will consider equity contributions to complement Afreximbank’s senior debt, enabling full capital structuring for eligible projects, besides leveraging Afreximbank’s platforms, including the Intra-African Trade Fair, to promote its initiatives and engage stakeholders.
A structured programme will be developed to enhance MDGIF’s institutional capabilities in project structuring, risk management, and innovative financing.
The MoU, Mrs Awani explained, “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.
“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,” she added.
The statement also quoted Adama, as saying: “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.”
Ekperikpe Ekpo, Nigeria’s Minister of State for Petroleum Resource (Gas), who witnessed the ceremony on behalf of the government noted that the partnership will enable the country unlock “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,” he stressed.
The just ended fourth Intra-African Trade Fair (IATF2025), the statement noted, was a huge success, as it exceeded all its targets, drawing over 112,000 participants, both in person and online, while generating over $48 billion in trade deals.
The event which featured over 2,100 exhibitors was attended by 20 Heads of State and Government representatives, along with several ministers and other senior government officials and leading business people, the statement stressed.
