Nigeria eyes regional gas hub status with Afreximbank’s $500m backing

Mkpoikana Udoma

Port Harcourt — Nigeria is positioning itself as a regional gas hub following the signing of a $500 million Memorandum of Understanding, MoU, between the Midstream & Downstream Gas Infrastructure Fund, MDGIF, and Afreximbank, which will finance large-scale gas projects over the next four years.

Dr. Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas) and Chairman of the MDGIF Council, said the deal would accelerate Nigeria’s ambition to dominate Africa’s gas value chain, delivering pipelines, processing facilities, storage, and distribution networks that will serve both domestic and export markets.

“The agreement mobilizes $500 million over the next four years for transformative gas infrastructure projects that will expand pipelines, boost storage and distribution, strengthen energy security, create jobs, and accelerate Nigeria’s journey to a gas-powered economy,” Ekpo said in a post on X.

He noted that the partnership represents a strategic shift in positioning Nigeria as the go-to supplier for regional markets at a time when global demand for cleaner fuels is rising.

“This MoU is a clear demonstration of confidence in Nigeria’s gas sector and a critical step in delivering President Bola Ahmed Tinubu’s Renewed Hope Agenda for economic growth and sustainable energy,” the Minister added.

“The $500m facility will target midstream and downstream projects that enable Nigeria to commercialize its abundant 209 trillion cubic feet of proven gas reserves, reduce flaring, and strengthen linkages with power generation and industrial production.”

Energy experts have long argued that Nigeria’s underdeveloped gas infrastructure has been a barrier to unlocking its export potential, even as countries like Morocco, Senegal, and Mozambique ramp up their gas ambitions.

Ekpo stressed that the deal signals a turning point.

 “This is a defining moment for our gas industry, and for Nigeria,” he declared.

With Afreximbank’s backing, the Federal Government is expected to attract additional private sector capital, reinforcing its Decade of Gas vision and positioning Nigeria as a continental leader in gas-powered industrialization and energy transition.