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- FG has assured of Nigeria’s readiness to host the African Energy Bank and begin operations by January 2025
- Petroleum Minister (Oil), Lokpobiri says beyond financial commitment, Nigeria has signed and ratified the AEB establishment charter and agreement
- Nigeria defeated five other countries to win the AEB’s hosting rights
The federal government has assured its readiness to have the Africa Energy Bank (AEB) begin operations by January 2025 following Nigeria’s successful bid in July 2024.
Minister of State Petroleum Resources (Oil), Heineken Lokpobiri, gave the assurance at the 46th Ordinary Session of the Ministerial Council of the African Petroleum Producers’ Organisation (APPO) held in Yaoundé, Cameroon.
Lokpobiri reaffirmed Nigeria’s commitment to establishing the AEB, saying preparations are already being made to ensure a seamless operational launch of the bank in the first quarter of 2025.
The minister also added that the AEB aims to bridge financing gaps within Africa’s oil and gas industry by facilitating advancements in energy infrastructure across the continent.
The minister's Special Adviser on Media and Communication, Nneamaka Okafor, said in a statement that Lokpobiri noted that beyond financial commitments, Nigeria has also formally signed and ratified the AEB Establishment Agreement and Charter.
“We are prepared to host the Africa Energy Bank and our dedication to enhancing funding for Africa’s energy sector remains unwavering.
“Our commitment is underscored by Nigeria’s contribution of $69.1 million in equity funding to the Africa Energy Bank, which demonstrates our leadership role in supporting critical energy initiatives on the continent,” the minister said.
Lokpobiri also urged other APPO member countries to cooperate with Nigeria by accelerating their financial commitments to the bank.
He said, “I urge all member countries to expedite their subscription and payment of their allocated shares to the AEB. Together, we can achieve remarkable advancements in our energy sectors and establish ourselves as a continental energy hub.”
Nigeria defeated 5 countries to win AEB’s hosting rights
Recall that Nigeria had defeated Ghana, Benin, Algeria, South Africa and Cote d’Ivoire to win the AEB’s hosting rights.
Nigeria committed $100 million to the $5 billion bank, a partnership between Afreximbank and APPO, the umbrella body of oil-producing nations in Africa. The bank is focused on investments in oil and gas projects across Africa, including energy transitions and 2060 net zero commitments.
To achieve the funding requirements of the bank, which will begin operations later this year, each African member-country will contribute a minimum of $83 million for a total of about $1.5 billion over three years to be matched by Afreximbank and APPO, who have already approved a $1.75 billion investment for the bank. Outstanding funds of up to $2 billion will be sourced from other investors in and outside the continent.
APPO members followed the energy bank route given the continent’s oil potential of over 125 billion barrels of crude oil reserves and over 600 trillion cubic feet of gas reserves, among others.
To favourably position Nigeria to win the hosting rights of the bank, President Bola Tinubu, in May, approved a $100 million investment in the AEB for class A shares, which is $16.67 million higher than required of member countries.
This was followed by the hosting of envoys of members of APPO by Lokpobiri on June 11, where he lobbied that the bank be headquartered in Abuja, Nigeria, arguing that hosting the bank in Nigeria will ensure proximity to key energy experts and technocrats as well as leverage Nigeria’s oil and gas reserves.
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