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*Fitch: Nigeria, Mozambique to raise Africa’s LNG exports by 174.5% by 2034
*NLNG intensifies efforts to reduce methane emissions
Emmanuel Addeh in Abuja and Peter Uzoho in Lagos
The African Export-Import Bank (Afreximbank) and the Midstream and Downstream Gas Infrastructure Fund (MDGIF) have signed a $500 million Memorandum of Understanding (MoU) to promote, develop and improve gas infrastructure in Nigeria.
The deal was signed on the sidelines of the just ended fourth Intra-African Trade Fair (IATF2025), a statement from the continental lender at the weekend stated.
Director and Global Head, Project and Asset Based Finance, Helen Brume, signed on behalf of Afreximbank, while Mr. Oluwole Adama, Executive Director of the MDGIF, signed on behalf of the Fund, the statement said.
The MoU, it said, the statement said, emphasises private sector-led delivery models and aligns with both institutions’ mandates and strategic priorities.
Under the terms of the MoU, Afreximbank and MDGIF will work together with the overarching intention of mobilising up to $500 million over a four-year period to support midstream and downstream gas infrastructure projects.
The investment is structured as a blend of senior debt and equity contributions, considered under both entities’ independent mandates, with a focus on accelerating the modernisation and expansion of Nigeria’s gas sector.
Key areas of collaboration include: Joint identification and prioritisation of eligible projects, with annual pipeline targets to ensure investment goals are met, while Afreximbank will consider providing direct financing and credit risk guarantees to support project finance transactions, working alongside local financial institutions.
The areas of collaboration also include establishment of a dedicated support, either through funding or support framework, for feasibility studies, legal structuring, environmental assessments and other preparatory activities for bankable gas projects.
Besides, MDGIF will consider equity contributions to complement Afreximbank’s senior debt, enabling full capital structuring for eligible projects and will leverage Afreximbank’s platforms, including the Intra-African Trade Fair, to promote its initiatives and engage stakeholders.
In terms of capacity building, it will see the development of a structured programme to enhance MDGIF’s institutional capabilities in project structuring, risk management, and innovative financing.
With respect to the collaboration between both parties, Executive Vice President, Intra-African Trade and Export Development at Afreximbank, Kanayo Awani,noted that the deal will advance the development of gas infrastructure projects in Nigeria which will add value to the country’s natural resources.
“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, potentially, across the West Africa sub-region.
“We stand ready to work with the MDGIF in advancing the development of gas infrastructure projects in Nigeria which will add value to the country’s natural resources. This intervention is also important as it aligns with Afreximbank’s Industrialisation and Export development agenda,” Awani stated.
In his comments, Executive Director of MDGIF, Adama, said the partnership with Afreximbank enables MDGIF to mobilise capital as well as expand critical midstream and downstream infrastructure.
“Anchored on our statutory mandate under the Petroleum Industry Act and aligned with President Bola Ahmed Tinubu’s agenda to harness Nigeria’s gas resources for industrialisation and economic growth, 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.
Witnessing the ceremony on behalf of the Nigerian Government, the Minister of State for Petroleum Resource (Gas), Ekperikpe Ekpo, noted that Nigeria was creating a pipeline of bankable projects, supported by feasibility studies through the project.
“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, processing,” he said.
It said the just ended IATF2025 was a huge success, exceeding all its targets, noting that the event drew over 112,000 participants, both in person and online, and generated more than $48 billion in trade deals.
The MDGIF is a strategic initiative under Nigeria’s Petroleum Industry Act (PIA), focused on catalysing investment in gas infrastructure to support domestic utilisation and export-oriented growth.
Meanwhile, Liquefied Natural Gas (LNG) exports from sub-Saharan Africa are expected to surge from 35.7 billion cubic meters (bcm) in 2024 to 98 bcm in 2034, a 174.5 per cent increase, according to a report by Fitch Solutions.
Growth will be driven by rising output in Nigeria and Mozambique and the market entry of new producers including Mauritania and Senegal, the report added.
According to the report, net exports will reach 38.1 bcm in 2025 (+6.7 per cent year-on-year), 47.9 bcm in 2026 (+25.6 per cent), and peak at 101.4 bcm in 2031 before stabilising above 98 bcm by 2034. Total LNG production in the region is projected to grow 172.2 per cent over the decade.
In addition, Nigeria will remain the top exporter in the medium term, supported by the country’s LNG Limited’s Train 7 project, which is 80 per cent completed as of June 2025 and set to boost capacity by 35 per cent. Nigerian LNG exports are projected to reach 26.5 bcm in 2026, that is 32.5 per cent year-on-year.
Mozambique is also expected to ramp up gradually as foreign financing returns, underscored by the US Exim Bank’s $4.7 billion facility for TotalEnergies’ Mozambique LNG megaproject.
Historic LNG producers, including Nigeria, Angola, Equatorial Guinea, and Cameroon—are together expected to raise their total exports from 30.9 bcm in 2024 to 44.5 bcm by 2034.
Meanwhile, the Nigeria Liquefied Natural Gas Limited (NLNG) is intensifying its drive to reduce methane emissions by embedding prevention measures into its facility design, upgrading existing assets, and commissioning new technologies.
The Managing Director and Chief Executive Officer of NLNG, Dr Philip Mshelbila, stated this while speaking on a high-level panel session at the just-concluded 2025 Gastech Conference in Milan, Italy, according to a statement signed by the company’s General Manager, External Relations and Sustainable Development, Sophia Horsfall.
Mshelbila revealed that central to the company’s efforts was the installation of a new boil-off gas compressor system now nearing completion, which will capture and re-inject methane back into the value chain.
According to Mshelbila, the renewed focus reflects NLNG’s long-standing position as a market leader.
He noted that the company, which began operations about 26 years ago to mitigate Nigeria’s high level of gas flaring, has since cut the country’s flaring volumes by more than 40 per cent through the capture and monetisation of associated gas.
He further stated that NLNG was expanding its legacy to align with international best practices, such as the OGMP 2.0 standard, where the company has achieved Gold Standard for two consecutive years based on its demonstration of a clear plan towards achieving the highest levels of accuracy in methane emissions quantification using the OGMP framework (Level 5).
He remarked that NLNG has invested significant resources in building a robust framework to understand and manage methane emissions.
“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”, he said.
He stressed the central role of prevention in managing methane emission, and urged the industry to prioritise smarter plant design, improved pipelines and facilities, and timely upgrades to reduce fugitive leaks from brownfield assets.
The NLNG boss noted that about 40 per cent of global methane emissions occur naturally, primarily from wetlands and oceans.
He explained that the remaining 60 per cent stems from other human activities, with agriculture contributing the largest share at 40 per cent.
Mshelbila noted further that oil and gas operations were responsible for just about 21 per cent of total global methane emissions, adding that if emissions from agriculture and waste were not addressed, gains made in the oil and gas industry would be limited.
“The technology is available, but not everyone can afford it. Financing, particularly for smaller operators, is a major hurdle. And in many developing countries, policies and regulatory frameworks for methane are far less developed than those for carbon dioxide. These are gaps the global industry must urgently close,” he said.
Mshelbila called for stronger partnerships across the energy value chain, ranging from financing models that enable smaller operators to invest, to the sharing of knowledge on new technologies such as satellite-based detection systems.
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