In a major step toward transforming Nigeria’s energy landscape, the African Export-Import Bank (Afreximbank) and the Midstream and Downstream Gas Infrastructure Fund (MDGIF) have signed a landmark memorandum of understanding to jointly mobilise up to $500 million over the next four years for gas infrastructure development.
The agreement was formalised on the sidelines of the fourth Intra-African Trade Fair (IATF2025), held in Algiers, Algeria, and marks a strategic alignment between two institutions committed to accelerating industrialization and sustainable energy solutions across Nigeria.
The MoU was signed by Helen Brume, Director and Global Head of Project and Asset-Based Finance at Afreximbank, and Oluwole Adama, Executive Director of MDGIF.
The signing ceremony was witnessed by Nigeria’s Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, who hailed the partnership as a “game-changer” for Nigeria’s gas sector.
The agreement outlines a comprehensive framework for collaboration, reiterating private sector-led delivery models and aligning with both institutions’ mandates.
The $500 million investment will be structured as a blend of senior debt and equity contributions, with Afreximbank providing direct financing and credit risk guarantees, while MDGIF considers equity injections to complete capital structuring.
Speaking at the signing, Kanayo Awani, Executive Vice-President for Intra-African Trade and Export Development at Afreximbank, described the MoU as a “significant milestone” in Africa’s economic transformation.
She explained that the initiative aligns with Afreximbank’s broader agenda to support industrialisation and export development across Africa.
Adama, Executive Director of MDGIF, echoed the sentiment, highlighting the partnership’s alignment with Nigeria’s national priorities. Ekpo, who represented the Nigerian government at the signing, underscored the importance of the collaboration.
The MoU was signed during the IATF2025, which concluded with record-breaking success. The event drew over 112,000 participants, both in person and online, and generated more than $48 billion in trade and investment deals.
With over 2,100 exhibitors and 20 heads of state and government representatives in attendance, the fair served as a powerful platform for cross-border collaboration and investment promotion.
Afreximbank, which played a central role in organising the fair, used the occasion to spotlight its commitment to financing strategic infrastructure projects across Africa.
The MDGIF, established under Nigeria’s Petroleum Industry Act, leveraged the event to showcase its mandate and attract private sector interest in Nigeria’s gas sector. Nigeria holds one of the largest proven gas reserves in Africa, yet infrastructure bottlenecks have long hindered full-scale utilisation.
The country flares an estimated 275 million standard cubic feet of gas daily, according to the Nigerian Gas Flare Tracker, representing both an environmental hazard and a missed economic opportunity.
The Afreximbank-MDGIF partnership aims to address these challenges by accelerating investment in midstream and downstream infrastructure, pipelines, processing plants, storage facilities, and liquefied natural gas terminals.
These assets are critical to unlocking domestic consumption, powering industries, and boosting export capacity.
The collaboration also supports Nigeria’s energy transition goals, as gas is seen as a cleaner bridge fuel compared to coal and oil. By reducing flaring and expanding access to gas-based energy, the initiative contributes to both climate mitigation and industrial growth.
