The Federal Government has secured a major financial commitment to develop Nigeria’s gas sector after the African Export-Import Bank (Afreximbank) and the Midstream and Downstream Gas Infrastructure Fund (MDGIF) signed a memorandum of understanding to mobilise up to $500 million (£390m) for critical infrastructure projects.
The agreement, facilitated by the Cedrus Group Africa, was signed on the sidelines of the Intra-African Trade Fair in Cairo. It sets out a plan to raise funds over four years to support midstream and downstream projects. Afreximbank will also provide credit risk guarantees to encourage investment in local gas development.
Nigeria’s Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, hailed the initiative as a major boost for the country’s energy ambitions. “Through this partnership, we are unlocking the potential to mobilise up to $500m over the next four years for Nigeria’s gas infrastructure,” he said.
“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.”
The measures are designed to accelerate delivery of viable projects, attract private sector investment, expand gas utilisation, reduce flaring, and create jobs. The initiative aligns with President Bola Tinubu’s economic agenda, which positions the gas industry as a catalyst for industrialisation.
Executive Vice President of Intra-African Trade and Export Development at Afreximbank, Mrs Kanayo Awani, described the MoU as a milestone. “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,” she said.
MDGIF’s Executive Director, Oluwole Adama, emphasised that the partnership will help bridge longstanding infrastructure gaps. “Anchored on our statutory mandate under the Petroleum Industry Act and aligned with President Bola Tinubu’s agenda, this partnership with Afreximbank enables MDGIF to mobilise capital, expand critical midstream and downstream infrastructure, reduce flaring, and deliver sustainable energy solutions that power industries, create jobs, and improve livelihoods across Nigeria,” he said.
The agreement was facilitated by Cedrus Group Africa, which will act as an adviser. Its Chief Executive Officer, Olubusayo Adeniyi, said the firm is committed to ensuring the objectives translate into measurable results.
“We are not just raising money; we are creating the framework for sustainable gas development that supports jobs, industries, and Nigeria’s future prosperity,” Minister Ekpo concluded.
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