The Federal Government through the Midstream and Downstream Gas Infrastructure Fund (MDGIF) and the African Export-Import Bank (Afreximbank) at the weekend signed a Memorandum of Understanding (MoU) to raise $500 million for critical gas infrastructure projects in the country.
A statement from Cedrus Group Africa, facilitator of the deal, indicated that the agreement was signed on the sidelines of the Intra-African Trade Fair in Cairo by Afreximbank’s Helen Brume and MDGIF’s Executive Director, Oluwole Adama, signed on behalf of their respective entities.
Specifically, the MoU seeks to raise funds over four years to support Nigeria’s midstream and downstream projects. While Afreximbank will also provide credit risk guarantees to encourage investment in local gas development, both entities will establish a project preparatory facility and capacity-building programmes to strengthen technical expertise and ensure bankable projects reach financial close.
Commenting on the financing pact, Nigeria’s Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, described the MoU as a major boost for the country’s energy ambitions.
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He enthused: “Through this partnership, we are unlocking the potential to mobilise up to $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”, the minister added.
In her remarks, Executive Vice President of Intra-African Trade and Export Development at Afreximbank, Mrs Kanayo Awani, described the MoU as a milestone in Africa’s transformation journey.
She said: “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.”
Speaking on the pact, MDGIF’s Executive Director expressed optimism that the partnership would help bridge the funding gaps in the gas infrastructure projects.
He said: “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.”
The partners maintained the measures were designed to accelerate delivery of viable projects, attract private sector investment, expand gas utilisation, reduce flaring, and create jobs.
The Cedrus Group Africa, as the facilitator of the deal, will act as adviser and structuring partner to ensure the objectives translate into measurable results.
The group’s Chief Executive Officer, Olubusayo Adeniyi, assured that the firm was committed to mobilising private capital, structuring bankable projects, and creating sustainable frameworks for Nigeria’s gas future.
He promised: “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.”
