Afreximbank and MDGIF partner to boost gas infrastructure in Nigeria

African Export-Import Bank (Afreximbank) and the Midstream and Downstream Gas Infrastructure Fund (MDGIF) have signed a landmark memorandum of understanding (MoU) to develop and improve Nigeria’s gas infrastructure. The agreement was finalized during the fourth Intra-African Trade Fair (IATF2025).

The MoU establishes a collaborative framework to mobilize up to US$500 million over four years, combining senior debt and equity contributions to accelerate the modernization and expansion of Nigeria’s midstream and downstream gas sector.

Key areas of collaboration

The partnership will focus on:

Targeted gas infrastructure investment: Joint identification and prioritization of eligible projects with annual pipeline targets.
Senior debt financing: Afreximbank will provide financing and credit risk guarantees, working with local financial institutions.
Project preparatory support: Funding for feasibility studies, legal structuring, and environmental assessments for bankable projects.
Equity financing: MDGIF will provide equity contributions to complement Afreximbank’s debt financing.
Promotion and advocacy: Leveraging Afreximbank platforms, including IATF, to engage stakeholders and promote initiatives.
Capacity building: Structured programs to enhance MDGIF’s institutional capabilities in project structuring, risk management, and innovative financing.

Afreximbank and MDGIF officials sign a landmark MoU to advance Nigeria’s gas infrastructure.

Officials highlight significance of the partnership

Mrs. Kanayo Awani, Executive Vice President at Afreximbank, said the MoU represents a milestone in 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,” she said.

Mr. Oluwole Adama, Executive Director of MDGIF, emphasized alignment with the Petroleum Industry Act and the government’s agenda to harness Nigeria’s gas resources. “This partnership enables MDGIF to mobilize capital, expand infrastructure, reduce flaring, and deliver sustainable energy solutions that power industries, create jobs, and improve livelihoods across Nigeria,” he said.

The Nigerian Minister of State for Petroleum Resources (Gas) noted that the initiative will create a pipeline of bankable projects supported by feasibility studies and risk-sharing mechanisms, accelerating investment in pipelines and processing facilities.

IATF2025 sets the stage for investment

The fourth Intra-African Trade Fair attracted over 112,000 participants both in person and online, generating more than $48 billion in trade deals. Over 2,100 exhibitors participated, and the event was attended by 20 heads of state and senior government officials.