Afreximbank, MDGIF Seal Landmark $500m Gas Infrastructure Pact at IATF2025

The African Export-Import Bank (Afreximbank) and the Midstream and Downstream Gas Infrastructure Fund (MDGIF) have signed a landmark memorandum of understanding (MoU) to accelerate the development of Nigeria’s gas sector through a $500 million investment framework.

The agreement was concluded on the sidelines of the fourth Intra-African Trade Fair (IATF2025) and signed by Mrs. Helen Brume, Director and Global Head of Project and Asset-Based Finance at Afreximbank, and Mr. Oluwole Adama, Executive Director of MDGIF. The MoU aligns with both institutions’ mandates to promote private sector-led models for sustainable infrastructure financing.

Under the arrangement, Afreximbank and MDGIF will collaborate over four years to mobilise up to half a billion dollars for midstream and downstream gas infrastructure. The partnership will blend senior debt financing from Afreximbank with equity contributions from MDGIF, ensuring full capital structuring for eligible projects.

Key areas of collaboration include:

• Targeted Investments: Joint identification and prioritisation of gas infrastructure projects with annual pipeline targets.

• Debt Financing: Afreximbank will provide direct loans and credit risk guarantees to strengthen project bankability.

• Project Preparation: Dedicated support for feasibility studies, legal structuring, and environmental assessments.

• Equity Support: MDGIF will deploy equity capital to complement Afreximbank’s debt facilities.

• Promotion and Advocacy: Leveraging Afreximbank’s platforms, including IATF, to raise visibility and attract partners.

• Capacity Building: Programmes to strengthen MDGIF’s institutional capacity in risk management and project structuring.

Mrs. Kanayo Awani, Executive Vice President of Intra-African Trade and Export Development at Afreximbank, described the MoU as “a significant milestone in advancing Africa’s economic transformation.”

“By combining Afreximbank’s deep expertise in trade and project finance with MDGIF’s national investment reach, we are unlocking new opportunities for inclusive growth and sustainable development across Nigeria and potentially the wider West African region,” she said.

Echoing this, MDGIF’s Executive Director, Mr. Oluwole Adama, noted that the partnership aligns with Nigeria’s Petroleum Industry Act and President Bola Ahmed Tinubu’s economic agenda.

“This collaboration will help mobilise capital, expand critical infrastructure, reduce gas flaring, and deliver sustainable energy solutions that power industries, create jobs, and improve livelihoods,” Adama said.

The signing was witnessed by Nigeria’s Minister of State for Petroleum Resources (Gas), who emphasised the importance of the deal in creating a pipeline of bankable projects backed by feasibility studies and risk-sharing frameworks.

“Through this partnership, we are unlocking the potential to mobilise up to $500 million over the next four years for Nigeria’s gas infrastructure,” the minister said. “This is not just about capital; it is about accelerating investments in pipelines and processing facilities that will reshape our energy landscape.”

The agreement was one of the highlights of IATF2025, which closed with record-breaking results: more than 112,000 participants onsite and online, $48 billion in trade deals, 2,100 exhibitors, and the participation of 20 Heads of State and senior government leaders from across Africa.