Nigeria Wins Bid To Host $5 billion African Energy Bank

Nigeria Wins Bid To Host $5 billion African Energy Bank

In a significant development, Nigeria has been selected as the preferred host nation for the Africa Energy Bank (AEB), a major boost to the country’s energy sector. The announcement was made by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, after a virtual meeting of the African Petroleum Producers Organisation (APPO) council of ministers.

Nigeria beat stiff competition from five other countries, including Ghana, Benin, Algeria, South Africa, and Côte d’Ivoire, to secure the coveted hosting rights. The selection is seen as a testament to Nigeria’s robust energy sector and its strategic vision for the continent’s energy future.

The AEB is expected to play a crucial role in facilitating access to funding for energy projects, thereby catalyzing economic growth and enhancing energy security across Africa. The bank’s establishment aligns with the African Union’s Agenda 2063, which aims to create a prosperous and self-sustaining Africa.

Lokpobiri hailed the development as a “remarkable victory” for Nigeria and the entire continent, saying it symbolises collective efforts to harness and develop Africa’s rich energy resources for a brighter, more sustainable future. He assured Nigerians and Africans that the establishment of the AEB will mark a transformative era in meeting energy needs.

The minister emphasized that Nigeria is committed to ensuring that the bank will not only benefit the country but also serve as a beacon of progress for the entire continent. He expressed gratitude to President Bola Tinubu for his unwavering support and to the council of ministers for their trust in Nigeria’s ability to lead this pivotal initiative.

The Nigerian government had earlier expressed its readiness to host the bank, citing proximity to opportunities essential for formulating and implementing effective solutions to Africa’s energy challenges. The bank’s share capital is expected to be subscribed over three years, with an initial capital of $1.5 billion reserved for APPO member countries.

The establishment of the AEB is seen as a major boost to Nigeria’s energy sector and its efforts to promote sustainable energy solutions. It is expected to foster collaboration among African countries and facilitate access to funding for energy projects, ultimately contributing to economic growth and energy security across the continent.

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