…We celebrate transformation of an ambitious African vision
By Saidu Abubakar
It has been asserted that as the global energy transition gathered momentum, major international financial institutions, development banks, and investors increasingly adopted policies restricting or reducing financing for fossil fuel projects, particularly in Africa. The implications were particularly serious.
The assertion was made on Saturday in Abuja by Nigeria’s Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri while delivering his remarks at the inaugural General Assembly of the newly established Africa Energy Bank.
“We recognized that unless Africa developed alternative financing arrangements, substantial portions of our energy resources could remain undeveloped, not necessarily because they lacked commercial value, but because access to international financing was becoming increasingly constrained,” he justified the establishment of the bank headquartered in Abuja.
He noted that “today is not just another day in the history of African energy cooperation. It is a defining moment in our collective determination to take greater responsibility for the development of our continent and the welfare of our people.
“Today, we celebrate the transformation of an ambitious African vision into an African institution.
“Today, we celebrate the power of partnership, perseverance, and political will.
“Above all, today, we celebrate the African spirit of believing that we can, and demonstrating that we can. The journey that brings us together today began four and a half years ago.”
Lokpobiri recalled that in April 2022, the Ministerial Council of the African Petroleum Producers’ Organization (APPO) approved the signing of a Memorandum of Understanding between it and the African Export-Import Bank, Afreximbank, for the establishment of the Africa Energy Bank.
The decision was informed by a growing concern among African petroleum-producing countries about the future financing of Africa’s oil and gas industry, the Minister stated further.
“Our continent possesses enormous oil and gas resources, yet hundreds of millions of our people continue to live without access to modern energy services. Our industries need reliable energy.
“Our young people need jobs. Our economies require industrialization, infrastructure, and sustained investment. None of these could be achieved without access to energy.”
He also said that It was recognized that Africa’s energy transition must reflect Africa’s circumstances, development priorities, and legitimate aspirations.
While we appreciate the global imperative of addressing climate change and we support responsible energy development and a transition towards cleaner energy systems, we insist that Africa must have the opportunity to utilize its abundant energy resources responsibly to overcome energy poverty and accelerate economic development. “It was against this background that APPO and Afreximbank conceived the Africa Energy Bank.”
The idea was simple but profound: “if traditional sources of financing were becoming increasingly unavailable to African oil and gas projects, Africa must develop its own financial institution to help bridge the emerging gap.
He further categorically stated that Africa Energy Bank was therefore conceived not merely as another development finance institution, but as a strategic African response to a fundamental African development challenge.