The Federal Government is taking decisive steps to harness Nigeria’s vast gas wealth after the African Export-Import Bank and the Midstream and Downstream Gas Infrastructure Fund signed a landmark memorandum of understanding to mobilise up to $500m for critical gas infrastructure projects.
The agreement, announced in a statement from Cedrus Group Africa on Saturday, was signed on the sidelines of the Intra-African Trade Fair in Cairo and facilitated by Cedrus Group Africa. Afreximbank’s Helen Brume and MDGIF’s Oluwole Adama signed on behalf of their respective institutions.
The deal 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. Both institutions will establish a project preparatory facility and capacity-building programmes to strengthen technical expertise and ensure bankable projects reach financial close.
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.”
According to the partners, the measures are designed to accelerate delivery of viable projects, attract private sector investment, expand gas utilisation, reduce flaring, and create jobs. The initiative also aligns with President Bola Tinubu’s economic agenda, which positions the gas industry as a catalyst for industrialisation and sustainable growth.
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. “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.
Nigeria, despite holding Africa’s largest proven natural gas reserves, has struggled to harness its resources effectively. Infrastructure gaps, financing challenges, and regulatory uncertainty have slowed development, leaving the country unable to fully convert gas into industrial growth and reliable domestic energy.
MDGIF’s Executive Director, Oluwole Adama, emphasised that the partnership will help bridge these 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 adviser and structuring partner to ensure the objectives translate into measurable results. Its Chief Executive Officer, Olubusayo Adeniyi, said the firm is committed to mobilising private capital, structuring bankable projects, and creating sustainable frameworks for Nigeria’s gas future.
“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,” Adeniyi noted.
The new deal also reinforces Nigeria’s push to end routine gas flaring by 2030, a commitment made under global climate agreements. By expanding midstream and downstream processing facilities, the country can capture and commercialise gas that is currently wasted, turning an environmental liability into an economic asset.
Analysts note that increased investment in liquefied natural gas, gas-to-power projects, and petrochemical plants will not only reduce emissions but also create value-added industries and jobs across the country.
Industry observers view the agreement as one of the most significant financing commitments for Nigeria’s gas sector in recent years. With Afreximbank providing financial depth, MDGIF ensuring alignment with national policy, and Cedrus Africa structuring the projects, the deal represents a multi-stakeholder effort to unlock Nigeria’s gas potential.
If successfully implemented, the $500m initiative could accelerate the country’s transition from a crude oil-dependent economy to a more diversified, gas-driven industrial hub.
“We are not just raising money; we are creating the framework for sustainable gas development that supports jobs, industries, and Nigeria’s future prosperity,” Nigeria’s gas minister, Ekpo, concluded.
By Justice Okamgba @ThePUNCH
