The African Export-Import Bank (Afreximbank) and the Midstream and Downstream Gas Infrastructure Fund (MDGIF) signed a $500 million Memorandum of Understanding (MoU) to develop and expand gas infrastructure in Nigeria.
The parties signed the MoU during the fourth Intra-African Trade Fair (IATF2025), according to a weekend statement from Afreximbank. Helen Brume, Director and Global Head of Project and Asset-Based Finance, signed for Afreximbank, while Oluwole Adama, Executive Director, signed for MDGIF.
The MoU highlights private sector-driven delivery models and aligns with the strategic priorities of both institutions.
Under the agreement, Afreximbank and MDGIF plan to mobilize up to $500 million over four years to support midstream and downstream gas projects. The funding will combine senior debt and equity, with a focus on expanding and modernizing Nigeria’s gas sector.
Both parties will jointly select and prioritize projects, setting annual targets to meet investment goals. Afreximbank will provide direct financing and credit risk guarantees, working with local financial institutions to support project transactions.
They also agreed to fund feasibility studies, legal frameworks, environmental assessments, and other preparatory activities to make projects bankable.
MDGIF will contribute equity alongside Afreximbank’s debt to fully finance selected projects and will use Afreximbank’s platforms, such as IATF, to promote initiatives and attract stakeholders.
The partnership includes a capacity-building program to strengthen MDGIF’s skills in project structuring, risk management, and innovative financing.
Kanayo Awani, Executive Vice President of Afreximbank, said the collaboration will accelerate gas infrastructure projects, add value to Nigeria’s resources, and support sustainable development across West Africa.
Awani stressed that the deal reflects Afreximbank’s industrialization and export development agenda, combining its project finance expertise with MDGIF’s national reach.
MDGIF’s Executive Director, Adama, said the partnership will mobilize capital, expand gas infrastructure, reduce flaring, and create jobs while boosting Nigeria’s industrial growth.
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, witnessed the signing and emphasized that the partnership will create a pipeline of bankable projects backed by feasibility studies and risk-sharing mechanisms.
The IATF2025 closed with over 112,000 participants and generated more than $48 billion in trade deals, the organizers confirmed.
MDGIF, created under Nigeria’s Petroleum Industry Act, aims to catalyze investment in gas infrastructure for both domestic use and export growth.
Meanwhile, a Fitch Solutions report projected LNG exports from sub-Saharan Africa to rise from 35.7 bcm in 2024 to 98 bcm in 2034, driven by Nigeria, Mozambique, and new producers such as Mauritania and Senegal.
The report forecast net exports of 38.1 bcm in 2025, 47.9 bcm in 2026, and a peak of 101.4 bcm in 2031 before stabilizing above 98 bcm by 2034.
Nigeria will remain the region’s top LNG exporter, supported by its nearly completed Train 7 project, which will boost capacity by 35 percent and raise exports to 26.5 bcm in 2026.
Mozambique will gradually scale up production as foreign financing returns, including a $4.7 billion US Exim Bank facility for TotalEnergies’ LNG megaproject.
Traditional producers such as Nigeria, Angola, Equatorial Guinea, and Cameroon are expected to raise exports from 30.9 bcm in 2024 to 44.5 bcm by 2034.
NLNG is also stepping up efforts to cut methane emissions by upgrading facilities, redesigning plants, and adopting new technologies, including a near-complete boil-off gas compressor system.
Managing Director Philip Mshelbila explained that NLNG’s operations have already reduced Nigeria’s flaring volumes by over 40 percent, reinforcing its leadership in gas monetization.
He added that NLNG aligns with global best practices, achieving OGMP 2.0 Gold Standard for two years by demonstrating advanced methane measurement and reduction.
Mshelbila noted that NLNG has built strong frameworks to detect, measure, and address methane leaks, but urged industry-wide collaboration since no single operator can solve the problem.
He stressed prevention as the key to reducing emissions, calling for better plant design, pipeline upgrades, and timely facility improvements.
Mshelbila also pointed out that 40 percent of methane emissions occur naturally, while agriculture produces the largest human-driven share at 40 percent, and oil and gas contribute about 21 percent.
He warned that without tackling agricultural and waste emissions, progress in the oil and gas sector will remain limited.
He highlighted financing as a major hurdle for smaller operators and noted weaker methane policies in many developing countries compared to carbon dioxide regulations.
Mshelbila called for stronger industry partnerships, better financing models for small operators, and wider use of technologies like satellite-based detection to close these gaps.
source : www.thisdaylive.com
African Energy Council