Afreximbank, MDGIF Sign Landmark $500m MoU to Boost Nigeria’s Gas Sector

The African Export-Import Bank (Afreximbank) and the Midstream and Downstream Gas Infrastructure Fund (MDGIF) have signed a landmark Memorandum of Understanding (MoU) to accelerate investment in Nigeria’s midstream and downstream gas infrastructure. The agreement, sealed on the sidelines of the 4th Intra-African Trade Fair (IATF2025), is expected to mobilise up to US$500 million over four years to modernise and expand the country’s gas sector.

The MoU was signed by Mrs Helen Brume, Director and Global Head – Project and Asset Based Finance, Afreximbank, and Mr. Oluwole Adama, Executive Director, MDGIF.

Driving Nigeria’s Gas Industrialisation Agenda

The partnership will focus on private sector-led delivery models, aligning with both institutions’ mandates to foster sustainable energy, industrialisation, and inclusive economic growth. The funds will be mobilised as a blend of senior debt and equity contributions, ensuring full capital structuring for eligible gas projects.

Key areas of collaboration include:

• Targeted Gas Infrastructure Investment: Joint identification and prioritisation of bankable midstream and downstream projects, with annual targets.

• Senior Debt Financing: Afreximbank to provide direct financing and credit risk guarantees, supporting project finance transactions alongside local banks.

• Project Preparatory Support: Dedicated funding for feasibility studies, legal structuring, and environmental assessments.

• Equity Financing: MDGIF to contribute equity investments complementing Afreximbank’s debt facilities.

• Promotion and Advocacy: Leveraging Afreximbank’s trade platforms, including the IATF, to highlight projects and attract investors.

• Capacity Building: Structured programmes to enhance MDGIF’s institutional expertise in risk management, project structuring, and innovative financing.

Leaders’ Perspectives

Mrs Kanayo Awani, Afreximbank’s Executive Vice President – Intra-African Trade and Export Development, hailed the MoU as a “significant milestone in Africa’s economic transformation.”

“By combining Afreximbank’s expertise in trade and project finance with MDGIF’s national investment reach, we are unlocking new opportunities for inclusive growth and sustainable development across Nigeria and, potentially, across West Africa,” she said.

She emphasised that the initiative supports Afreximbank’s wider agenda of industrialisation and export development, while ensuring Nigeria adds greater value to its natural gas resources.

Mr. Oluwole Adama, Executive Director of MDGIF, noted the agreement’s alignment with Nigeria’s Petroleum Industry Act (PIA) and President Bola Ahmed Tinubu’s gas industrialisation agenda.

“This partnership enables us to mobilise capital, expand critical midstream and downstream infrastructure, reduce flaring, and deliver sustainable energy solutions that power industries, create jobs, and improve livelihoods,” he stated.

Representing the Nigerian Government, the Minister of State for Petroleum Resources (Gas) underscored the agreement’s significance: “Through this partnership, we are unlocking the potential to mobilise up to US$500 million over the next four years for Nigeria’s gas infrastructure. More importantly, we are building a pipeline of bankable projects, backed by risk-sharing and feasibility studies, that will accelerate pipelines, processing plants, and sustainable gas utilisation.”

Nigeria’s Gas Sector at a Turning Point

Nigeria holds some of the world’s largest proven gas reserves, but infrastructure constraints have hampered full exploitation. Decades of underinvestment have limited gas supply to industries, contributed to persistent flaring, and slowed the energy transition. The Afreximbank-MDGIF partnership represents a bold step toward bridging this infrastructure gap, while positioning Nigeria as a regional hub for gas-powered industrialisation.

The projects envisaged under the MoU will target pipelines, processing plants, storage, and distribution systems. By focusing on midstream and downstream segments, the initiative will support industrial clusters, export opportunities, and cleaner domestic energy solutions.

Success of IATF2025: A Backdrop for the MoU

The signing took place at the 4th Intra-African Trade Fair (IATF2025), which concluded on a high note, surpassing all expectations:

• 112,000+ participants, both online and in person.

• $48 billion in trade deals generated.

• 2,100 exhibitors from across the continent.

• Attendance by 20 Heads of State and Government representatives, senior ministers, and leading business leaders.

The IATF continues to serve as Africa’s premier platform for trade, investment, and economic partnerships, making it an ideal stage for the Afreximbank-MDGIF announcement.

Unlocking a $500m Opportunity

The Afreximbank-MDGIF MoU is expected to catalyse further investments into Nigeria’s energy sector, creating a multiplier effect across industries, jobs, and exports. It represents a shift towards private sector-driven, bankable projects supported by strong risk management and capacity-building frameworks.

As Mrs Awani concluded, “This is not just about infrastructure; it is about transforming economies and improving lives. Nigeria’s gas resources can be a cornerstone for industrialisation, and this partnership ensures that potential becomes reality.”