The Federal Government of Nigeria has designated January 28, 2025, as the deadline for operationalizing the $5 billion Africa Energy Bank in its capital, Abuja.
A Nigerian delegation, led by Amb. Nicholas Agbo Ella, Permanent Secretary of the Ministry of Petroleum Resources and Executive Board Member representing Nigeria at the African Petroleum Producers Organization (APPO), announced the timeline during the 19th Executive Board Meeting of the organization in Yaounde, Cameroon.
Amb. Ella emphasized Nigeria’s commitment to APPO’s ideals and the prompt establishment of the energy bank in Abuja.
He further stated that the Africa Energy Bank (AEB) aims to bridge financing gaps within the continent’s oil and gas industry.
“Nigeria won the hosting right for the establishment of the Africa Energy Bank (AEB) Headquarters in July 2024, after it competed with Ghana, Algeria, South Africa, and Benin Republic.
“I am pleased to address the Executive Board (EB) meeting on this very important subject matter – the take-off of the Africa Energy Bank Headquarters in Abuja, Nigeria.”
“As you are no doubt aware, the Headquarters building (of the Africa Energy Bank) was inspected by the Technical Team on 24th May 2024, and renovation works for its completion are ongoing. Nigeria is fully committed to delivering the building with furnishing to the bank in good time.
“We have the full support and cooperation of Mr. President, His Excellency Bola Ahmed Tinubu GCFR, and our National Assembly to actualise this project in Nigeria,” he said.
Nigeria’s Equity Contribution to the Bank
Regarding Nigeria’s equity contribution to the Africa Energy Bank, Amb. Ella stated that Nigeria is actively working to fulfill its share.
He noted that, in addition to an earlier payment of $59.1 million, the Federal Government made an additional $10 million contribution to the APPO account last week.
He added that Nigeria intends to complete the full payment before the bank becomes operational.
“Apart from the earlier payment of $59,120,000:00, an additional $10 million was paid into the APPO Account by the FGN (Nigeria) last week. We intend to make full payment before the bank takes off.
“Nigeria wishes to advocate for the establishment and funding of the Africa Energy Bank as part of APPO’s budgetary plans. This initiative would not only address the financial needs of the energy sector but also provide a platform for mobilizing investments in oil and gas projects, which are vital for Africa’s economic growth and development.” Ella said.
What you should know
The $5 billion Africa Energy Bank is a brainchild of the Africa Petroleum Producers’ Organization (APPO).
- The bank which is equally funded by the Afreximbank is set to fill the imminent void of the withdrawal of funding for oil and gas projects in Africa by the traditional financiers.
- According to a report, Afreximbank approved the total sum of $1.7 billion as an investment for the Energy Bank, making it one of the main investors in the financial institution.
So far, APPO has a total of 18 members across Africa, all of which are either oil or gas-producing nations, or both.
Source: nairametrics