By Charles Ebi
African Export-Import Bank ,Afreximbank, and the Midstream and Downstream Gas Infrastructure Fund ,MDGIF, have signed a Memorandum of Understanding ,MoU, to establish a collaborative framework aimed at promoting, developing, and improving gas infrastructure in Nigeria.
It was signed on the sidelines of the just-ended fourth Intra-African Trade Fair ,IATF2025, by Ms Helen Brume, Director and Global Head – Project and Asset-Based Finance on behalf of Afreximbank, and Mr Oluwole Adama, Executive Director on behalf of MDGIF.
The MoU emphasises private sector-led delivery models and aligns with both institutions’ mandates and strategic priorities.
Under the terms of the MoU, Afreximbank and MDGIF will work together with the overarching intention of mobilising up to $500 million over a four-year period to support midstream and downstream gas infrastructure projects. The investment is structured as a blend of senior debt and equity contributions, considered under both entities’ independent mandates, with a focus on accelerating the modernisation and expansion of Nigeria’s gas sector.
Some of the areas that will be covered by the framework include joint identification and prioritisation of eligible projects, with annual pipeline targets to ensure investment goals are met as well as the provision of direct financing and credit risk guarantees by Afreximbank to support project finance transactions, working alongside local financial institution, and the establishment of a dedicated support, either through funding or a support framework, for feasibility studies, legal structuring, environmental assessments, and other preparatory activities for bankable gas projects.
Others include MDGIF considering equity contributions to complement Afreximbank’s senior debt, enabling full capital structuring for eligible projects, leveraging Afreximbank’s platforms, including the Intra-African Trade Fair, to promote its initiatives and engage stakeholders, and the development of a structured programme to enhance MDGIF’s institutional capabilities in project structuring, risk management, and innovative financing.
Speaking on the partnership, Mrs Kanayo Awani, Executive Vice-President – Intra-African Trade and Export Development at Afreximbank, said, “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”.
On his part, Mr Oluwole Adama, Executive Director of MDGIF, 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”.
