By Olakunle oke
At the just concluded Intra-African Trade Fair (IATF2025), Nigeria has inked a $500m deal for its Midstream and Downstream Gas Infrastructure Fund (MDGIF).
The landmark agreement was formalised on the sidelines of the fourth Intra-African Trade Fair (IATF2025) 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 Midstream and Downstream Gas Infrastructure Fund (MDGIF) is a strategic initiative under Nigeria’s Petroleum Industry Act, focused on catalyzing investment in gas infrastructure to support domestic utilization and export-oriented growth.
The Fund’s primary purpose is to make equity investments of Government owned participating or shareholder interests in infrastructure related to midstream and downstream gas operations aimed at increasing the domestic consumption of natural gas in Nigeria in projects which are financed in part by private investment.
Under the MoU, both institutions will collaborate to mobilise up to $500 million over a four-year period, blending senior debt and equity contributions. The investment will target critical midstream and downstream gas infrastructure, with a focus on modernisation, expansion, and sustainability.
Key areas of the partnership include project identification, senior debt financing, equity contributions, feasibility studies, legal and environmental assessments, and capacity building for MDGIF. Afreximbank will also provide direct financing and credit guarantees, while MDGIF will leverage the bank’s platforms to promote its initiatives.
Speaking at the signing, Mrs. Kanayo Awani, Executive Vice President for Intra-African Trade and Export Development at Afreximbank, described the deal as a milestone in the bank’s commitment to Africa’s economic transformation.
“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 the West African sub-region,” she said.
Mr. Adama, on his part, said the agreement aligns with Nigeria’s Petroleum Industry Act and President Bola Ahmed Tinubu’s agenda to harness the country’s gas resources. He noted that the partnership will help reduce gas flaring, expand infrastructure, power industries, create jobs, and improve livelihoods.
The signing was witnessed by the Minister of State for Petroleum Resources (Gas), who highlighted the government’s commitment to mobilising funds for bankable projects that will accelerate investment in pipelines and processing facilities.
The IATF2025, where the agreement was sealed, recorded massive success with over 112,000 participants, more than 2,100 exhibitors, $48 billion in trade deals, and the attendance of 20 Heads of State alongside top government officials and business leaders.