African Export-Import Bank (Afreximbank) and Nigeria’s Midstream and Downstream Gas Infrastructure Fund (MDGIF) signed a memorandum of understanding to mobilize up to $500 million over four years for gas infrastructure development in Nigeria.
New Agreement
The agreement was signed September 13, 2025, during the fourth Intra-African Trade Fair (IATF2025) in Algiers, Algeria.
Mrs. Helen Brume, Afreximbank’s Director and Global Head of Project and Asset Based Finance, signed for the bank, while Mr. Oluwole Adama, Executive Director, represented MDGIF.
Investment Structure
The $500 million investment will combine senior debt and equity contributions over the four-year period.
Afreximbank will provide direct financing and credit risk guarantees, working with local financial institutions.
MDGIF will contribute equity financing to complement the senior debt structure.
The partnership focuses on private sector-led delivery models for midstream and downstream gas infrastructure projects across Nigeria.
Partnership Areas
The collaboration covers several critical areas:
Project Identification: Joint selection and prioritization of eligible gas infrastructure projects with annual pipeline targets.
Financing Support: Afreximbank will offer senior debt financing and credit guarantees for project finance transactions.
Project Development: Dedicated support for feasibility studies, legal structuring, environmental assessments, and other preparatory work for bankable projects.
Capacity Building: Development of structured programs to enhance MDGIF’s capabilities in project structuring, risk management, and innovative financing.
Strategic Alignment
Mrs. Kanayo Awani, Executive Vice President of Intra-African Trade and Export Development at Afreximbank, said the partnership represents
“I’m.”
She noted the collaboration aligns with Afreximbank’s industrialization and export development agenda, adding value to Nigeria’s natural resources.
Mr. Oluwole Adama of MDGIF emphasized the partnership’s alignment with President Bola Ahmed Tinubu’s agenda to harness Nigeria’s gas resources for industrialization and economic growth.
He said the collaboration will
“mobilize capital, expand critical midstream and downstream infrastructure, reduce flaring, and deliver sustainable energy solutions.”
Government Support
Nigeria’s Minister of State for Petroleum Resource (Gas) witnessed the signing ceremony and highlighted the partnership’s potential to create
“a pipeline of bankable projects, supported by feasibility studies, project preparation, and risk-sharing mechanisms.”
MDGIF Background
The Midstream and Downstream Gas Infrastructure Fund operates under Nigeria’s Petroleum Industry Act.
Its mandate focuses on making equity investments in gas infrastructure projects to increase domestic natural gas consumption and encourage private investment through risk-sharing mechanisms.
The fund specifically targets projects that reduce or eliminate gas flaring in Nigeria while supporting both domestic utilization and export-oriented growth.
Trade Fair Context
The signing occurred during IATF2025, which exceeded targets with over 112,000 participants and generated more than $48 billion in trade deals.
The event featured over 2,100 exhibitors and was attended by 20 heads of state and government representatives.
Impact Goals
The partnership aims to accelerate modernization and expansion of Nigeria’s gas sector infrastructure.
Through combined expertise – Afreximbank’s trade and project finance experience with MDGIF’s national investment focus – the collaboration targets inclusive growth and sustainable development across Nigeria and potentially the broader West Africa region.
The initiative supports Nigeria’s broader energy security goals and economic diversification efforts through strategic gas infrastructure development, positioning the country to better utilize its natural gas resources for industrial growth and job creation.
Sources: .
