A significant milestone has been achieved in Nigeria’s quest for energy transformation with the announcement of a groundbreaking financing partnership between the African Export-Import Bank (Afreximbank) and Nigeria’s Midstream and Downstream Gas Infrastructure Fund (MDGIF). This monumental agreement, valued at $500 million, aims to enhance gas infrastructure across Nigeria over the next four years, thereby playing a pivotal role in the nation’s economic framework.
The memorandum of understanding was formalized at the fourth Intra-African Trade Fair held in Algiers, where leaders from various sectors convened to discuss collaborative efforts for economic growth. The partnership will see Afreximbank provide senior debt financing complemented by equity contributions from MDGIF, aiming to revamp Nigeria’s vital gas sector infrastructure, which has historically been underfunded.
This partnership is not merely about funding; it encapsulates a comprehensive support system for project development. As outlined by Helen Brume, Director and Global Head of Project and Asset Based Finance at Afreximbank, and Oluwole Adama, Executive Director of MDGIF, the framework will include feasibility studies, environmental assessments, and legal structuring. This holistic approach is designed to ensure that projects are not only viable but also sustainable, thereby promoting a responsible development trajectory.
Kanayo Awani, Executive Vice President for Intra-African Trade and Export Development at Afreximbank, highlighted the significance of this collaboration, stating that it merges Afreximbank’s extensive expertise in trade and project finance with MDGIF’s reach within Nigeria. This synergy aims to unlock economic opportunities that contribute to widespread growth, aligning directly with the institution’s broader agenda for industrialization and export development.
MDGIF’s Oluwole Adama emphasized the alignment of this partnership with President Bola Ahmed Tinubu’s vision for leveraging Nigeria’s rich gas reserves to spur industrialization and economic expansion. By connecting this venture to the Petroleum Industry Act framework, the partnership aims to mobilize capital, reduce gas flaring, and implement sustainable energy solutions that will have long-lasting benefits on job creation and community livelihoods.
The recent success of MDGIF is evident, having already launched six projects by October 2024, with several of these initiatives in motion. The anticipation of additional projects to operationalize in late 2025 and early 2026 reflects the proactive nature of this collaboration in addressing Nigeria’s infrastructural challenges.
Amidst this backdrop, Nigeria’s Minister of State for Petroleum Resources (Gas) underscored the significance of creating a pipeline of bankable projects. This is expected to be supported by thorough feasibility studies and risk-sharing mechanisms that could attract further investments in pipelines and processing facilities. Such initiatives are crucial for transforming Nigeria’s energy landscape and enhancing its position on the continental stage.
The agreement was finalized during IATF2025, which witnessed unprecedented success, attracting over 112,000 visitors and facilitating deals totaling $48.3 billion in trade and investment. This showcases not only Nigeria’s energy ambitions but also its strategic role as a hub for development finance in Africa.
In recent months, the Nigerian government has demonstrated a commitment to enhancing its energy infrastructure, investing 122 billion Naira into six companies aimed at revolutionizing the gas value chain. This $500 million deal stands as a beacon of Nigeria’s potential, reinforcing its strategic focus on energy as a cornerstone for economic diversification beyond traditional oil dependence.
