By Our Correspondents
Copyright independent
African Export-Import Bank and the Midstream and Downstream Gas Infrastructure Fund (MDGIF) have signed a landmark memorandum of understanding (MoU) to establish a collaborative framework aimed at promoting, developing and improving gas infrastructure in Nigeria.
It was signed on the sidelines of the just ended fourth Intra-African Trade Fair by Mrs Helen Brume, Director and Global Head – Project and Asset Based Finance on behalf of Afreximbank, and Mr. Oluwole Adama, Executive Director on behalf of MDGIF.
The MoU 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: Targeted Gas Infrastructure Investment: Joint identification and prioritisation of eligible projects, with annual pipeline targets to ensure investment goals are met. Senior Debt Financing: Afreximbank will consider providing direct financing and credit risk guarantees to support project finance transactions, working alongside local financial institutions. Project Preparatory Support: 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. Equity Financing: MDGIF will consider equity contributions to complement Afreximbank’s senior debt, enabling full capital structuring for eligible projects. Promotion and MDGIF will leverage Afreximbank’s platforms, including the Intra-African Trade Fair, to promote its initiatives and engage stakeholders, as development of a structured programme to enhance MDGIF’s institutional capabilities in project structuring, risk management, and innovative
