## Afreximbank and MDGIF Sign Landmark Agreement to Boost Nigeria’s Gas Infrastructure
The African Export-Import Bank (Afreximbank) and the Midstream and Downstream Gas Infrastructure Fund (MDGIF) have formalized a significant agreement to enhance and develop gas infrastructure in Nigeria. The memorandum of understanding (MoU) was signed during the recent fourth Intra-African Trade Fair (IATF2025), marking a pivotal step in collaboration aimed at promoting effective infrastructure solutions in the country’s gas sector.
### The Signatories and Their Intent
The MoU was signed by Mrs. Helen Brume, the Director and Global Head of Project and Asset Based Finance representing Afreximbank, and Mr. Oluwole Adama, Executive Director for MDGIF. This collaboration underscores the importance of private sector involvement in delivering essential infrastructure, aligning perfectly with the strategic goals of both organizations.
### Mobilizing Investment for Gas Projects
As part of their agreement, Afreximbank and MDGIF are committed to mobilizing up to US$ 500 million over a four-year timeframe. This investment strategy is designed as a combination of senior debt and equity contributions and aims to stimulate the modernization and expansion of Nigeria’s gas sector.
Key areas of collaboration under this MoU include:
– **Targeted Gas Infrastructure Investment:** The two entities will work together to identify and prioritize projects, setting annual targets to ensure that investment goals are achieved.
– **Senior Debt Financing:** Afreximbank plans to offer direct financing and credit risk guarantees for project finance transactions. This will be done in partnership with local financial institutions to maximize impact.
– **Project Preparatory Support:** The initiative includes establishing a dedicated support framework for critical preparatory activities, such as feasibility studies and environmental assessments, to ensure that gas projects are bankable.
– **Equity Financing Contributions:** MDGIF will consider equity investments that complement Afreximbank’s senior debt, facilitating complete capital structuring for eligible projects.
– **Promotion and Advocacy:** Utilizing platforms like the Intra-African Trade Fair, MDGIF will promote its initiatives and engage with stakeholders to foster deeper industry connections.
– **Capacity Building:** There will be a structured program aimed at improving MDGIF’s organizational capabilities, particularly in project structuring and risk management.
### Statements of Support from Leadership
Mrs. Kanayo Awani, Executive Vice President of Afreximbank, expressed enthusiasm regarding the partnership, stating that the MoU represents a significant step toward empowering Africa’s economic transformation. She emphasized that the collaboration is set to unlock new avenues for inclusive growth in Nigeria and potentially throughout West Africa.
Mr. Oluwole Adama echoed this sentiment, noting that the partnership is instrumental under the Petroleum Industry Act and aligns with Nigeria’s national objectives under President Bola Ahmed Tinubu’s agenda. He stated that the collaboration with Afreximbank will catalyze investment, reduce gas flaring, and deliver sustainable energy solutions that benefit multiple facets of Nigerian society.
### Government Backing for the Initiative
The Nigerian government also expressed its support during the MoU signing ceremony. The Minister of State for Petroleum Resources commented on the potential to mobilize substantial capital for gas infrastructure. This partnership is expected to spawn a series of bankable projects enhanced by feasibility studies and risk-sharing mechanisms, thereby accelerating investment in essential pipeline and processing infrastructure.
### Recap of the Intra-African Trade Fair
The signing took place during the IATF2025, which surpassed expectations, attracting over 112,000 participants—both in-person and online. The fair generated more than $48 billion in trade deals and showcased over 2,100 exhibitors, making it a hub for trade and investment opportunities across Africa.
For further insights, visit [www.IntraAfricanTradeFair.com](http://www.IntraAfricanTradeFair.com).
### About the Collaborators
**Afreximbank** focuses on promoting and financing African trade, supporting transformational economic initiatives across the continent. The bank’s expertise in trade and project finance positions it as a key player in advancing infrastructure projects.
**MDGIF**, established under Nigeria’s Petroleum Industry Act, aims to drive investment in gas infrastructure that will promote domestic utilization while catalyzing export growth. The fund’s role includes making equity investments in strategic projects, particularly in reducing gas flaring and enhancing infrastructure aimed at improving economic conditions in Nigeria.
For additional information about Afreximbank, MDGIF, and the Intra-African Trade Fair, relevant contacts include:
– **MDGIF Contact**: authority@nmdpra.gov.ng
– **Afreximbank Press Contact**: press@afreximbank.com
– **Intra-African Trade Fair Media Contact**: media@intrafricatradefair.com
