APPO Urges Members On $83m Energy Bank September Take-off

  • APPO has urged member countries to fulfil their financial obligations to establish the Africa Energy Bank.
  • Algerian executive board member Remini Amine emphasised that local content, manpower, and infrastructure development are key to unlocking Africa’s energy opportunities.

The African Petroleum Producers’ Organisation (APPO) has urged member countries to fulfil their financial obligations to establish the Africa Energy Bank (AEB), which will be located in Abuja, Nigeria.

Likewise, to ensure the bank’s operationalisation, APPO secretary general Dr. Umar Farouk Ibrahim called on African oil-producing member countries to contribute their subscription fees of $83 million to ensure the bank’s launch in September 2024.

Dr. Ibrahim made this appeal during the 18th ordinary meeting of the APPO executive board in Brazzaville, Republic of Congo, on June 9th, where APPO’s headquarters is situated.

Nicholas Ella, the permanent secretary of the Ministry of Petroleum Resources led the Nigerian delegation at the executive board meeting in Brazzaville.

Dr. Ibrahim reaffirmed the APPO Council of Ministers’ resolution to confer the hosting rights of the Africa Energy Bank on Nigeria.

Also, President Bola Tinubu expressed gratitude to member states for their unwavering support and confidence in Nigeria’s bid to host the Africa Energy Bank, Amb. Ella reiterated Nigeria’s commitment to the continental bloc’s ideals to enhance energy security in Africa.

“The gathering of the 18 member countries of APPO in Brazzaville demonstrates our collective dedication to fostering unity, cooperation, and sustainable development within the African energy sector,” noted Amb. Ella.

Moreover, he pledged Nigeria’s determination to collaborate with other members to address the financial needs of Africa’s energy sector through funding oil and gas projects. Amb. Ella urged member countries to “harness the collective strength of our nations to build a brighter, more prosperous future for Africa.”

“Together, we will create an institution that addresses the financial needs of our energy projects and champions sustainable development, environmental stewardship, and economic inclusivity across Africa,” he added.

Meanwhile, during a brainstorming session on the continent’s energy future, Algerian executive board member Remini Amine emphasised that local content, manpower, and infrastructure development are key to unlocking Africa’s energy opportunities.

APPO member state representatives agreed that the Africa Energy Bank would bridge funding gaps in the sector. Dr. Ibe Kachikwu, former Nigerian Minister of State Petroleum Resources, suggested a ten-year plan for the energy industry to encourage an “open era” for investment.

Dr Kachikwu advised APPO to grow the energy bank’s capital base before investing. Furthermore, speakers at the week-long event emphasised the need for national oil companies (NOCs) to lead in crude oil production and refine oil to meet local consumption needs. The Africa Energy Bank is an initiative of the African Petroleum Producers Organisation and Afreximbank.

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