The African Export-Import Bank (Afreximbank) and the Midstream and Downstream Gas Infrastructure Fund (MDGIF) have entered into a memorandum of understanding to raise $500 million for Nigeria’s gas sector.

The partnership, announced at the Intra-African Trade Fair (IATF 2025), aims to scale up investment in pipelines, processing plants, and LNG facilities, while reducing gas flaring and driving industrial growth in line with President Bola Tinubu’s economic agenda.

Under the deal, Afreximbank will support the sector with risk guarantees, project preparation, and capacity-building programmes. The agreement was signed by Afreximbank’s Director of Project and Asset-Based Finance, Helen Brume, and MDGIF’s Executive Director, Oluwole Adama, with facilitation from Cedrus Group Africa.

Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, called the collaboration a milestone that would unlock a stream of bankable projects capable of attracting sustainable investments.

Afreximbank’s Executive Vice President for Intra-African Trade, Kanayo Awani, said the initiative would drive inclusive growth and development across Nigeria and the West African sub-region.

Adama stressed that the fund, backed by the Petroleum Industry Act and Tinubu’s policies, would mobilise capital to expand gas infrastructure and deliver long-term energy solutions. Cedrus Group Africa’s CEO, Olubusayo Adeniyi, added that the company would ensure the MoU translates into concrete results through private capital mobilisation and structured projects.

The initiative is projected to mobilise $500 million over four years to strengthen Nigeria’s gas infrastructure and support sustainable economic progress.