The Federal Government has unveiled a new strategy to fast-track investment in Nigeria’s gas sector through a $500 million funding plan agreed between the African Export-Import Bank (Afreximbank) and the Midstream and Downstream Gas Infrastructure Fund (MDGIF).
The pact, signed during the Intra-African Trade Fair in Cairo and announced in a statement by Cedrus Group Africa on Saturday, was endorsed by Afreximbank’s Helen Brume and MDGIF’s Oluwole Adama. Cedrus Group Africa facilitated the negotiations.
Under the memorandum of understanding, both institutions will work over the next four years to raise capital for pipelines, gas processing plants, LNG facilities, and other midstream and downstream projects.
Afreximbank will also extend credit risk guarantees to attract more private investment, while a dedicated project-preparation and capacity-building platform will help ensure the viability of proposed ventures.
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, welcomed the deal as a critical step towards realising Nigeria’s energy ambitions. “This collaboration opens the door to mobilising up to $500 million for essential gas infrastructure and bankable projects that will accelerate growth in our gas value chain,” he said.
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The partners explained that the initiative aims to stimulate private-sector participation, expand domestic gas use, cut flaring, and generate employment, all in line with President Bola Tinubu’s economic reforms that view gas as a driver of industrialisation and sustainable growth.
Kanayo Awani, Afreximbank’s Executive Vice President for Intra-African Trade and Export Development, described the agreement as a “milestone for Africa’s transformation,” noting that the partnership would help unlock inclusive growth opportunities in Nigeria and across West Africa.
Despite holding the continent’s largest proven gas reserves, Nigeria has long faced delays in converting its natural wealth into industrial capacity and steady energy supply, largely due to infrastructure gaps, funding constraints, and regulatory challenges — issues this initiative seeks to address.
