The Federal Government of Nigeria has officially announced the launch date for the Africa Energy Bank (AEB), a highly anticipated $5 billion initiative aimed at advancing energy access and development across Africa.
Slated to begin operations on January 28, 2025, the announcement was made during the African Petroleum Producers Organization’s (APPO) 19th Executive Board meeting in Yaoundé, Cameroon, signaling a major step forward in addressing financing challenges within Africa’s oil and gas sectors.
The Africa Energy Bank, headquartered in Abuja, Nigeria, seeks to bridge funding gaps in the continent’s hydrocarbon projects, providing vital support for oil and gas developments across African nations.
Ambassador Nicholas Ella, Permanent Secretary of Nigeria’s Federal Ministry of Petroleum Resources, highlighted the country’s enthusiasm for the project, noting Nigeria’s competitive bid against several African nations to host the bank’s headquarters. He emphasized Nigeria’s commitment to APPO’s goals, remarking, “I am pleased to address the Executive Board meeting on this very important subject matter – the take-off of the Africa Energy Bank Headquarters in Abuja, Nigeria.”
A technical team has already inspected the headquarters building, and renovations are ongoing to meet operational requirements. Ambassador Ella confirmed Nigeria’s dedication to completing the headquarters facilities, stating, “Nigeria is fully committed to delivering the building with furnishing to the bank in good time.” This effort underlines Nigeria’s readiness to provide a conducive environment for the bank’s operations.
To establish the AEB, Nigeria has made significant financial contributions. The Federal Executive Council approved an initial $59.12 million towards the country’s equity in the bank, followed by an additional $10 million deposited into the APPO account. This financial backing underscores Nigeria’s resolve to meet its funding obligations, with full payment expected before the bank’s launch. Ella affirmed this commitment, saying, “We intend to make full payment before the bank takes off.”
The announcement has received widespread approval from APPO stakeholders, including Dr. Farouk Ibrahim, APPO’s Secretary General, who confirmed that 50% of the necessary funds for operationalizing the AEB have already been secured. He encouraged member countries to sustain their efforts, saying, “I would like to urge APPO member countries to keep up the tempo for the bank’s take-off.”
Dr. Ibrahim also revealed that AEB’s shareholder structure will include three classes of shareholders, with APPO and AfreximBank positioned as priority shareholders, ensuring efficient governance and operational effectiveness.
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