The federal government, through the Midstream and Downstream Gas Infrastructure Fund, has entered into a memorandum of understanding with Afreximbank to mobilise $500 million over the next four years for major gas infrastructure projects.

In a statement issued on Thursday, the government said the investment will drive the development of pipelines, processing plants, liquefied natural gas facilities, and downstream initiatives to modernise the gas sector.

“The Midstream & Downstream Gas Infrastructure Fund (MDGIF), signed a landmark Memorandum of Understanding with Afreximbank to mobilize US$500 million over the next four years for transformative gas infrastructure investments.

“US$500 Million funding for pipelines, processing facilities, LNG, and downstream projects to modernize our gas industry.

“A dedicated Project Preparatory Support for feasibility studies, technical assessments & transaction structuring-ensuring every project is investment-ready.

“With MDGIF support and Afreximbank’s global reach, Nigeria’s gas sector gains access to deeper financing pools-sharing risks and crowding in private capital,” the statement reads.

The MDGIF is funded through 0.5 percent of the wholesale price of petroleum products and natural gas sold in Nigeria.

In October 2024, it spearheaded the approval of a ₦122 billion investment across six gas infrastructure companies.

The six beneficiaries are Asiko Energy Holdings Limited, FEMADEC Energy Limited, Ibile Oil and Gas Corporation, Nsik Oil and Gas Limited, Rolling Energy Limited, and Topline Limited.