Nigeria Secures Massive $500M Gas Infrastructure Deal as Energy Expansion Accelerates
In a major development for West Africa’s energy sector, Nigeria has secured a transformative $500 million financing agreement that promises to revolutionize the country’s gas infrastructure landscape. The African Export-Import Bank (Afreximbank) and Nigeria’s Midstream and Downstream Gas Infrastructure Fund (MDGIF) signed the groundbreaking Memorandum of Understanding that will mobilize funds over four years for critical midstream and downstream gas projects.
The partnership represents a strategic shift toward private sector-led delivery models, with Afreximbank providing senior debt financing and credit risk guarantees while MDGIF contributes equity investments. The collaboration will include joint project identification, annual pipeline targets, and comprehensive support for feasibility studies and environmental assessments.
This initiative is expected to accelerate the modernization and expansion of Nigeria’s gas sector significantly, contributing to the country’s broader industrialization goals and economic growth trajectory. Executive Vice President of Intra-African Trade and Export Development at Afreximbank, Kanayo Awani, emphasized the partnership’s potential to unlock new opportunities for inclusive growth and sustainable development across Nigeria and the broader West Africa sub-region.
Source: energycapitalpower.com
