Nigeria Mobilizes $500 Million for Massive Gas Infrastructure Expansion
Nigeria has secured a transformative $500 million financing package over four years to revolutionize its gas infrastructure, as the African Export-Import Bank and the Midstream and Downstream Gas Infrastructure Fund signed a landmark memorandum of understanding to accelerate critical energy projects across the country.
The comprehensive agreement establishes a collaborative framework combining senior debt and equity investments to support midstream and downstream gas infrastructure development. Under the partnership, both institutions will jointly identify and prioritize eligible projects with yearly targets to ensure steady progress toward Nigeria’s ambitious gas sector modernization goals.
Afreximbank will provide direct financing and credit risk guarantees in partnership with local financial institutions, while the Midstream and Downstream Gas Infrastructure Fund will explore equity contributions to complete capital structures for selected projects. The collaboration will also support preparatory activities including feasibility studies, legal and environmental assessments, and project structuring to enhance bankability.
Mrs. Kanayo Awani, Executive Vice President for Intra-African Trade and Export Development at Afreximbank, described the partnership as a significant step forward in driving 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 potentially across the West Africa sub-region.”
Executive Director Oluwole Adama of MDGIF emphasized the initiative’s alignment with President Bola Ahmed Tinubu’s agenda to harness Nigeria’s gas resources for industrial and economic development. “This collaboration will help mobilize capital, expand critical infrastructure, reduce gas flaring, and deliver sustainable energy solutions that can power industries, generate employment, and improve livelihoods across the country.”
The partnership includes a structured capacity-building program to strengthen MDGIF’s institutional expertise in areas such as risk management and innovative financing, while leveraging Afreximbank’s promotional platforms to raise awareness and engage stakeholders across the continent.
Source: orientalnewsng.com
