The Multilateral Investment Guarantee Agency (Miga) has its first engagement in Nigeria’s gas sector. Miga is providing a guarantee of $200 million against the risk of expropriation to Accugas Ltd, a subsidiary of independent Nigerian oil and gas company Seven Energy, which is investing in mid-stream infrastructure.
Miga’s financial backing is part of the World Bank Group “solutions”; to date, the World Bank’s IFC has invested $75 million and the IFC African, Latin American, and Caribbean Fund has invested $30 million in Seven Energy.
“Miga’s involvement is an important part of the financial security package that enables us to invest for the long term in Nigeria’s gas sector – a decision that we expect will be good not only for our business, but also for Nigerian citizens, companies, and the economy as a whole,” says Phillip Ihenacho, Seven Energy CEO.
Seven Energy’s processing facility and pipelines now deliver gas to three power stations and two manufacturing plants in Nigeria.