Nigeria To Modernize, Expand Gas Sector Investment With Bankable Projects
Nigeria is taking new steps towards modernizing and expanding her gas sector, with a particular focus on bankable projects that can drive sustainable growth and industrialisation.
This is being facilitated after the African Export-Import Bank (Afreximbank) and the Midstream and Downstream Gas Infrastructure Fund (MDGIF) signed a landmark memorandum of understanding (MoU) aimed at accelerating the development of gas infrastructure in Nigeria.
The agreement was signed during the recently concluded fourth Intra-African Trade Fair (IATF2025) by Mrs. Helen Brume, Director and Global Head of Project and Asset-Based Finance at Afreximbank, and Mr. Oluwole Adama, Executive Director at MDGIF.
The MoU establishes a collaborative framework that reflects both institutions’ commitment to private sector-led solutions and aligns with their strategic objectives.
Under the agreement, Afreximbank and MDGIF will work together to mobilise up to $500 million over a four-year period to support midstream and downstream gas infrastructure projects across Nigeria.
This financing will include a combination of senior debt and equity investments, structured within each party’s independent mandate.
As part of the collaboration, both institutions will jointly identify and prioritise eligible gas infrastructure projects, with yearly targets to ensure steady progress.
Afreximbank will consider providing direct financing and credit risk guarantees in partnership with local financial institutions, while MDGIF will explore equity contributions to complete the capital structure for selected projects. Additionally, the partnership will support preparatory activities such as feasibility studies, legal and environmental assessments, and project structuring to enhance bankability.
MDGIF will also leverage Afreximbank’s promotional platforms, including the Intra-African Trade Fair, to raise awareness of its initiatives and engage with stakeholders. Furthermore, a structured capacity-building programme will be developed to strengthen MDGIF’s institutional expertise in areas such as risk management and innovative financing.
Commenting on the partnership, Mrs. Kanayo Awani, Executive Vice President for Intra-African Trade and Export Development at Afreximbank, described the MoU as a significant step forward in the bank’s mission to drive Africa’s economic transformation.
She noted that by combining Afreximbank’s deep project finance experience with MDGIF’s national investment mandate, the partnership is well-positioned to unlock inclusive growth and sustainable development in Nigeria and potentially across West Africa. She added that the initiative also aligns with Afreximbank’s broader industrialisation and export development agenda.
“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,” Awani said.
Mr. Adama, Executive Director of MDGIF, remarked that the partnership reflects MDGIF’s statutory mandate under the Petroleum Industry Act and is aligned with President Bola Ahmed Tinubu’s agenda to harness Nigeria’s gas resources for industrial and economic development. He emphasized that this collaboration with Afreximbank will help mobilise capital, expand critical infrastructure, reduce gas flaring, and deliver sustainable energy solutions that can power industries, generate employment, and improve livelihoods across the country.
Representing the Nigerian government, the Minister of State for Petroleum Resources (Gas) expressed support for the partnership, noting its potential to attract up to $500 million in gas infrastructure investment over the next four years. He also highlighted the importance of developing a pipeline of well-prepared, bankable projects supported by feasibility studies, project preparation, and risk-sharing mechanisms to accelerate investment in pipelines and processing infrastructure.
“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,” Adama stated.
The fourth Intra-African Trade Fair (IATF2025), where the MoU was signed, concluded with resounding success.
The event attracted over 112,000 participants both physically and virtually, facilitated more than $48 billion in trade deals, and featured over 2,100 exhibitors.
It was attended by 20 Heads of State and Government representatives, along with numerous ministers, senior officials, and prominent business leaders from across the continent.