By Emmanuel Nduka Obisue
The African Export-Import Bank (Afreximbank) has signed a landmark memorandum of understanding (MoU) to mobilise $500 million over the next four years for transformative gas infrastructure projects in Nigeria.
The agreement, signed with the Midstream and Downstream Gas Infrastructure Fund (MDGIF) on the sidelines of the Intra-African Trade Fair (IATF2025), is aimed at promoting the development, expansion, and financing of midstream and downstream gas facilities. The deal was facilitated by Cedrus Group Africa.
Helen Brume, Director and Global Head, Project and Asset-Based Finance at Afreximbank, and Oluwole Adama, Executive Director of MDGIF, signed on behalf of their respective organisations. The MoU provides for project preparatory support, credit risk guarantees, and capacity-building initiatives to accelerate bankable projects and attract private-sector investment.
Speaking on the agreement, Nigeria’s Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said: “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 facilities, LNG, and other critical infrastructure”.
Executive Vice President, Intra-African Trade and Export Development, Afreximbank, Kanayo Awani, described the deal as a milestone: “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”.
Also commenting, Executive Director of MDGIF, Oluwole Adama, noted: “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 industrialization and economic growth, this partnership with Afreximbank enables MDGIF to mobilize capital, expand critical midstream and downstream infrastructure, reduce flaring, and deliver sustainable energy solutions that power industries, create jobs, and improve livelihoods across Nigeria”.
Olubusayo Adeniyi, GCEO of Cedrus Group Africa, which facilitated the MoU, stressed the importance of execution: “As adviser and facilitator of this MoU, Cedrus Group Africa is committed to ensuring its objectives translate into real outcomes, mobilising private capital, structuring bankable projects, and creating the right frameworks for long-term sustainability in Nigeria’s gas sector”.
The partnership is expected to play a pivotal role in reducing gas flaring, boosting industrialisation, and positioning Nigeria’s gas industry as a key driver of jobs, energy security, and sustainable growth.
