Afreximbank, MDGIF Sign $500m Gas Deal As Fitch Tips Africa’s LNG Exports To Soar 174%

Nigeria’s quest to expand its gas infrastructure and position gas as a central driver of economic growth received a major boost on Sunday, as the African Export-Import Bank (Afreximbank) and the Midstream and Downstream Gas Infrastructure Fund (MDGIF) signed a $500 million Memorandum of Understanding (MoU) to promote investment in the sector.

The agreement was signed on the sidelines of the fourth Intra-African Trade Fair (IATF2025), which closed at the weekend. Director and Global Head of Project and Asset-Based Finance, Helen Brume, signed for Afreximbank, while Executive Director, Mr. Oluwole Adama, represented MDGIF.

The deal aims to mobilise up to $500 million over four years through a blend of senior debt and equity contributions. Both parties will jointly identify and prioritise eligible midstream and downstream gas projects, with Afreximbank providing financing, credit risk guarantees, and support for feasibility studies, while MDGIF may inject equity to complement debt funding.

Executive Vice President, Intra-African Trade and Export Development at Afreximbank, Kanayo Awani, said the partnership would accelerate Nigeria’s gas modernisation drive. “This MoU marks a significant milestone in our shared commitment to accelerating 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 the West Africa sub-region,” Awani stated.

On his part, MDGIF Executive Director, Adama, noted that the collaboration aligns with President Bola Tinubu’s gas-driven industrialisation agenda. “Anchored on our statutory mandate under the Petroleum Industry Act, this partnership enables MDGIF to mobilise capital, expand midstream and downstream infrastructure, reduce flaring, and deliver sustainable energy solutions that power industries, create jobs, and improve livelihoods across Nigeria,” he said.

Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, who witnessed the signing, said the government was working to build a pipeline of bankable projects. “Through this partnership, we are unlocking the potential to mobilise up to $500 million over the next four years for Nigeria’s gas infrastructure. 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 and processing,” he explained.

The IATF2025 trade fair was described as a success, drawing over 112,000 participants and generating more than $48 billion in trade deals.

The MDGIF, established under the Petroleum Industry Act (PIA), is mandated to catalyse gas infrastructure development, supporting both domestic utilisation and export-led growth.

Meanwhile, a new report by Fitch Solutions projects that liquefied natural gas (LNG) exports from sub-Saharan Africa will surge by 174.5 per cent over the next decade, from 35.7 billion cubic metres (bcm) in 2024 to 98 bcm in 2034. Nigeria and Mozambique are expected to lead the growth, alongside new producers such as Mauritania and Senegal.

According to Fitch, Nigeria’s LNG exports will receive a major boost from the Nigeria LNG Limited’s Train 7 project, which is 80 per cent complete and will expand output capacity by 35 per cent. Exports are projected to hit 26.5 bcm in 2026, up 32.5 per cent year-on-year.

At the same time, the Nigeria LNG Limited (NLNG) said it is intensifying efforts to reduce methane emissions. Managing Director, Dr. Philip Mshelbila, speaking at the 2025 Gastech Conference in Milan, disclosed that the company was installing a new boil-off gas compressor system to capture and re-inject methane into the value chain.

“We know our baseline, we know where the leaks occur, and we measure whether our interventions are working. But the bigger challenge is how we get others in the industry to do the same. No single operator can solve this problem alone,”Mshelbila stressed.

He added that NLNG had already helped cut Nigeria’s gas flaring volumes by more than 40 per cent over 26 years of operation and was working to maintain its Gold Standard status under the UN-backed OGMP 2.0 framework for methane emissions monitoring.

Emmanuel Addeh and Peter Uzoho

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