Nigeria-AFriximbank Sign $500m Gas Infrastructure Project

Nigeria’s gas infrastructure maximisation plan has entered a new gear with the African Export-Import Bank and the Midstream and Downstream Gas Infrastructure Fund signing a memorandum of understanding (MoU).

The MoU is expected to raise about $500m for investment in the country’s gas infrastructure projects, the Cedrus Group Africa has stated, adding that the fund is expected to be mobilsied over a four-year period.

“Through this partnership, we are unlocking the potential to mobilise up to $500m over the next four years for Nigeria’s gas infrastructure,” Nigeria’s Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, stated while reacting.

“More importantly, we are creating a pipeline of bankable projects, supported by feasibility studies, project preparation, and risk-sharing mechanisms, that will accelerate the pace of investment in pipelines, processing facilities, LNG, and other critical infrastructure.”

The signing of the MoU aligns with President Bola Tinubu’s quest to use Nigeria’s gas industry to trigger industrialisation and sustainable growth, it would also lead to

1. accelerated delivery of products
2. attract private sector investment
3. expand gas utilisation, reduce flaring
4. create jobs.

Executive Vice President of Intra-African Trade and Export Development at Afreximbank, Mrs Kanayo Awani, while hailing the signing of the MoU added:

“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”.

In the opinion of the MDGIF’s Executive Director, Oluwole Adama:

“Anchored on our statutory mandate under the Petroleum Industry Act and aligned with President Bola Tinubu’s agenda, this partnership with Afreximbank enables MDGIF to mobilise capital, expand critical midstream and downstream infrastructure, reduce flaring, and deliver sustainable energy solutions that power industries, create jobs, and improve livelihoods across Nigeria,” he said.

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Chief Executive Officer of Cedrus Group Africa, Olubusayo Adeniyi, said of the gas infrastructure project

“As adviser and facilitator of this MoU, Cedrus Group Africa is committed to ensuring its objectives translate into real outcomes, mobilising private capital, structuring bankable projects, and creating the right frameworks for long-term sustainability in Nigeria’s gas sector”.

“We are not just raising money; we are creating the framework for sustainable gas development that supports jobs, industries, and Nigeria’s future prosperity,” Nigeria’s gas minister, Ekpo, concluded.