Afreximbank and MDGIF Commit $500m to Transform Nigeria’s Gas Sector

The African Export-Import Bank (Afreximbank) and Nigeria’s Midstream and Downstream Gas Infrastructure Fund (MDGIF) have inked a landmark memorandum of understanding to mobilise up to US$500 million over the next four years for gas infrastructure development.

The agreement, signed at the just-ended Intra-African Trade Fair (IATF2025) in Algiers, Algeria, is expected to accelerate the modernisation and expansion of Nigeria’s gas sector through private sector-led financing models.

Blueprint for Growth
Under the deal, Afreximbank and MDGIF will jointly select and prioritise projects, with annual targets set to ensure progress. Afreximbank will extend senior debt financing and credit risk guarantees, while MDGIF will inject equity, ensuring full capital structuring. Both institutions will also support feasibility studies, environmental assessments, and legal structuring, alongside capacity-building programmes to strengthen project design and risk management.

Driving Industrialisation
Kanayo Awani, Executive Vice President for Intra-African Trade and Export Development at Afreximbank, hailed the partnership as a catalyst for inclusive growth across Nigeria and West Africa.

Oluwole Adama, MDGIF’s Executive Director, said the initiative aligns with Nigeria’s Petroleum Industry Act and President Bola Ahmed Tinubu’s gas industrialisation agenda, pledging to expand infrastructure, cut gas flaring, and power industries.

Strong Government Backing
Witnessing the ceremony, Nigeria’s Minister of State for Petroleum Resources (Gas) underscored the deal’s potential to attract investment and generate a pipeline of bankable projects that could reshape the gas industry.

Part of a Bigger Picture
The MoU was among the standout achievements of IATF2025, which closed with more than US$48 billion worth of trade and investment deals. With over 112,000 participants, 2,100 exhibitors, and 20 Heads of State, the fair showcased Africa’s rising confidence in homegrown solutions.

The Afreximbank-MDGIF partnership highlights growing investor confidence in Nigeria’s energy sector and positions gas as a key driver of industrialisation and export-led growth.