The Midstream & Downstream Gas Infrastructure Fund (MDGIF) has signed a landmark Memorandum of Understanding (MoU) with African Export-Import Bank (Afreximbank) to mobilize US$500 million over the next four years for transformative gas infrastructure investments
It was signed on the sidelines of the just-ended fourth Intra-African Trade Fair (IATF2025) by Mrs 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 US$500 million over four years 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.
Key areas of collaboration Include:
- Targeted Gas Infrastructure Investment: Joint identification and prioritisation of eligible projects, with annual pipeline targets to ensure investment goals are met.
- Senior Debt Financing: Afreximbank will consider providing direct financing and credit risk guarantees to support project finance transactions, working alongside local financial institutions.
- Project Preparatory Support: Establishment of a dedicated support, either through funding or support framework, for feasibility studies, legal structuring, environmental assessments and other preparatory activities for bankable gas projects.
- Equity Financing: MDGIF will consider equity contributions to complement Afreximbank’s senior debt, enabling full capital structuring for eligible projects.
- Promotion and Advocacy: MDGIF will leverage Afreximbank’s platforms, including the Intra-African Trade Fair, to promote its initiatives and engage stakeholders.
- Capacity Building: Development of a structured programme to enhance MDGIF’s institutional capabilities in project structuring, risk management, and innovative financing.
With respect to the collaboration between both parties, Mrs Kanayo Awani, Executive Vice President – Intra-African Trade and Export Development at Afreximbank, noted that:
“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.”
In his comments, 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.”
Witnessing the ceremony on behalf of the Nigerian Government, the Minister of State for Petroleum Resource (Gas), noted:
“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.”
The just ended fourth Intra-African Trade Fair (IATF2025) was a huge success, exceeding all its targets. The event drew over 112,000 participants, both in person and online, and generated more than $48 billion in trade deals. It featured over 2,100 exhibitors and was attended by 20 Heads of State and Government representatives, along with several ministers and other senior government officials and leading business people.
