…Partnership to drive gas sector development
The African Export-Import Bank (Afreximbank) and the Midstream and Downstream Gas Infrastructure Fund (MDGIF) have signed a memorandum of understanding (MoU) to establish a framework for the development of gas infrastructure in Nigeria.
The agreement was signed on the sidelines of the fourth Intra-African Trade Fair (IATF2025) by Helen Brume, Director and Global Head – Project and Asset-Based Finance, on behalf of Afreximbank, and Oluwole Adama, Executive Director, on behalf of MDGIF.
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Under the MoU, both institutions intend to mobilise up to US$500 million over four years to support projects in Nigeria’s midstream and downstream gas sector. The investment will be structured as a blend of senior debt and equity contributions, designed to expand and modernise infrastructure across the country.
Areas of collaboration
The partnership will focus on six key areas, including the joint identification and prioritisation of eligible gas infrastructure projects with annual pipeline targets; the provision of senior debt financing and credit risk guarantees by Afreximbank, in collaboration with local financial institutions; and the establishment of a dedicated support framework for feasibility studies, legal structuring, environmental assessments, and other preparatory activities to ensure projects are bankable.
It will also involve equity contributions from MDGIF to complement Afreximbank’s debt financing, the use of Afreximbank’s platforms such as the Intra-African Trade Fair to promote initiatives and engage stakeholders, and the development of structured programmes to strengthen MDGIF’s institutional capabilities in project structuring, risk management, and innovative financing.
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Afreximbank’s position
Commenting on the partnership, Kanayo Awani, Executive Vice President – Intra-African Trade and Export Development at Afreximbank, said:
“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.”
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.”
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MDGIF’s commitment
Oluwole Adama, Executive Director of MDGIF, emphasised that the MoU aligns with national energy priorities. He said:
“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.”
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Government endorsement
Representing the Nigerian Government at the ceremony, the Minister of State for Petroleum Resource (Gas), highlighted the expected outcomes of the partnership.
“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.”
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IATF2025 as a platform
The MoU was signed during the fourth Intra-African Trade Fair, which drew more than 112,000 participants both in person and online. The event generated trade deals worth over $48 billion and featured more than 2,100 exhibitors. It was attended by 20 Heads of State and Government representatives, alongside ministers, senior government officials, and business leaders.
The trade fair served as a platform for advancing partnerships that align with Africa’s industrial and trade development agenda, with the Afreximbank–MDGIF collaboration positioned as a step towards strengthening Nigeria’s energy infrastructure.
