The Federal Government has entered into a landmark agreement with the African Export-Import Bank (Afreximbank) to mobilise up to $500 million for the development of critical gas infrastructure across Nigeria. The deal, formalised through a memorandum of understanding with the Midstream and Downstream Gas Infrastructure Fund (MDGIF), marks a decisive push to harness the nation’s vast natural gas reserves for economic growth and industrialisation.
The agreement was announced at the Intra-African Trade Fair in Cairo, with facilitation provided by Cedrus Group Africa. Afreximbank’s Director and Global Head of Project and Asset-Based Finance, Helen Brume, and MDGIF’s Executive Director, Oluwole Adama, signed on behalf of their institutions. Under the arrangement, funds will be raised progressively over the next four years to support pipelines, processing facilities, liquefied natural gas (LNG) plants, and other midstream and downstream projects.
Afreximbank will also extend credit risk guarantees to encourage private sector participation, while both partners will establish a project preparatory facility to deliver feasibility studies and build technical expertise. The goal is to ensure that only bankable projects move forward to financial close, thereby reducing risks and accelerating execution.
Nigeria’s Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, described the deal as a major step in unlocking the country’s gas potential. According to him, the initiative not only secures funding but also lays the groundwork for sustainable investments through feasibility studies, risk-sharing mechanisms, and structured project pipelines. He emphasised that the projects would expand gas utilisation, create jobs, reduce flaring, and provide energy security, in line with President Bola Tinubu’s economic agenda.
Executive Vice President of Intra-African Trade and Export Development at Afreximbank, Kanayo Awani, hailed the MoU as a milestone in Africa’s development journey. She noted that combining Afreximbank’s financing expertise with MDGIF’s national reach would unlock new opportunities for inclusive growth, not only in Nigeria but potentially across the wider West African region.
Despite holding Africa’s largest proven gas reserves, Nigeria has long struggled to harness its resources effectively due to infrastructure deficits, financing hurdles, and regulatory uncertainty. The partnership seeks to bridge these gaps by mobilising capital and ensuring policy alignment. MDGIF’s Oluwole Adama highlighted that the deal reflects the Fund’s statutory mandate under the Petroleum Industry Act, while also supporting Tinubu’s industrialisation agenda.
As adviser and structuring partner, Cedrus Group Africa pledged to translate the MoU into measurable results. Its Chief Executive Officer, Olubusayo Adeniyi, said the firm would help mobilise private capital, design sustainable project frameworks, and ensure long-term benefits for Nigeria’s gas sector.
The initiative also reinforces Nigeria’s commitment to end routine gas flaring by 2030 under global climate agreements. By expanding processing and storage infrastructure, wasted gas can be captured and commercialised, turning environmental risks into economic opportunities. Analysts argue that scaling up LNG, gas-to-power, and petrochemical projects will reduce emissions while creating value-added industries and jobs.
Industry observers regard the $500 million plan as one of the most significant financing commitments in Nigeria’s gas sector in recent years. With Afreximbank’s financial depth, MDGIF’s policy alignment, and Cedrus Africa’s structuring expertise, the agreement represents a multi-stakeholder effort to transform Nigeria into a gas-driven industrial hub.
Minister Ekpo summed up the vision: “We are not just raising funds; we are building a framework for sustainable gas development that supports industries, jobs, and Nigeria’s long-term prosperity.
