By William Emmanuel Ukpoju
In a significant development for the African energy sector, the African Petroleum Producers’ Organization (APPO) has announced that Nigeria will host the headquarters of the Africa Energy Bank (AEB). The decision was made during the 45th Extraordinary Session of the APPO Ministerial Council, held virtually and chaired by HE Bruno Jean Richard Itoua, alternate President of APPO Council of Ministers/Minister of Hydrocarbons of the Republic of Congo.
The Africa Energy Bank is a joint initiative between APPO and the African Export-Import Bank (Afreximbank) aimed at addressing the funding challenges facing the African oil and gas industry. The bank will provide financing for energy projects across the continent, with a focus on oil and gas as well as renewable energy sources.
Nigeria’s selection as the host country for the AEB headquarters was based on objective criteria including socio-economic factors, security, and accessibility. The Ministerial Selection Committee, chaired by Libya’s Minister of Oil and Gas, HE Mohamed Oun, considered bids from several member countries before recommending Nigeria as the preferred host.
APPO President commended Nigeria for its commitment to the organization and urged the country to ensure the necessary facilities are in place for the bank’s timely and effective takeoff. Nigeria’s Minister of State for Petroleum Resources, (Oil) Senator Heineken Lokpobiri, expressed appreciation for the unanimous decision and assured the council that Nigeria would exceed expectations in hosting the bank.
The Africa Energy Bank is expected to play a critical role in bridging the funding gap for energy projects in Africa, which has been exacerbated by the energy transition. The bank’s initial share capital is set at $5 billion, with subscriptions open to APPO member countries, national oil and gas companies, and other investors.
This development is a significant milestone for Africa’s energy sector and a testament to the continent’s commitment to energy security and sustainability. As the Africa Energy Bank prepares to commence operations, the continent can expect increased investment in energy projects, economic growth, and improved energy access.
