- Nigeria’s gas infrastructure will receive $500m in support from Afreximbank and MDGIF.
- Partnership will reduce flaring, expand pipelines, and create economic opportunities.
Nigeria’s gas infrastructure is set for a major boost as the African Export-Import Bank (Afreximbank) and the Midstream and Downstream Gas Infrastructure Fund (MDGIF) have signed a $500 million Memorandum of Understanding (MoU). The agreement, reached during the Intra-African Trade Fair 2025, will support the promotion, development, and expansion of gas infrastructure across Nigeria.
The MoU emphasises private sector-led delivery models and aligns with the strategic priorities of both institutions. Consequently, Afreximbank and MDGIF aim to mobilise up to $500 million over four years to advance midstream and downstream gas projects.
Under the partnership terms, Afreximbank will consider direct financing, credit risk guarantees, and collaboration with local financial institutions. Meanwhile, MDGIF will explore equity contributions to complement Afreximbank’s senior debt, ensuring comprehensive capital structuring for selected projects.
In addition, both parties will jointly identify and prioritise eligible projects with annual targets to meet investment objectives. They will also provide feasibility studies, legal structuring, and environmental assessments to strengthen project preparation. Furthermore, Afreximbank will leverage platforms such as the Intra-African Trade Fair to promote initiatives and attract stakeholders.
Afreximbank’s Executive Vice President, Kanayo Awani, highlighted that the deal marks a milestone in accelerating Africa’s economic transformation. Similarly, MDGIF’s Executive Director, Oluwole Adama, stressed that the partnership will reduce gas flaring and create jobs and power industries.
Nigeria’s Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, welcomed the initiative. He explained that the collaboration will unlock a pipeline of bankable projects backed by feasibility studies and risk-sharing frameworks.
The MDGIF, created under the Petroleum Industry Act, serves as a catalyst for investment in Nigeria’s gas infrastructure. Therefore, this agreement reinforces Nigeria’s commitment to harnessing gas resources for industrialisation and sustainable growth.
Through this collaboration, Nigeria’s gas infrastructure will expand significantly, strengthening the country’s energy sector and supporting long-term economic development.