- Five other nations have pledged payments, aligning with the goal of the Africa Energy Bank to commence operations in the first half of 2025.
- With an initial capitalisation of $5 billion, APPO requested its 18 member states to contribute $83 million each to fund the bank’s operations.
Nigeria, Angola, and Ghana have completed their capital contributions toward establishing the Africa Energy Bank (AEB), a key financial institution designed to bridge funding gaps in the continent’s oil and gas industry.
This commitment represents 44% of the minimum required funding from member states of the African Petroleum Producers Organisation (APPO), marking a critical step toward the bank’s launch.
Announcing the progress at the Congo Energy & Investment Forum, APPO Secretary General Dr Omar Farouk Ibrahim stated that the AEB aims to finance oil and gas projects across Africa, addressing the challenge posed by Western financial institutions withdrawing support for fossil fuel projects due to climate concerns.
With an initial capitalisation of $5 billion, APPO requested its 18 member states to contribute $83 million each to fund the bank’s operations. In addition to Nigeria, Angola, and Ghana, five other nations—Algeria, Benin, Republic of Congo, Equatorial Guinea, and Ivory Coast—have pledged payments, aligning with the bank’s goal to commence operations in the first half of 2025.
The African Energy Chamber (AEC) emphasised that the bank’s creation is a strategic move to secure dedicated financing solutions tailored to Africa’s energy sector, ensuring energy security and economic growth.
The establishment of the Africa Energy Bank comes amid a wave of new investments and projects across Africa’s oil and gas sector, with Nigeria, Angola, and Ghana leading the way.
Nigeria remains Sub-Saharan Africa’s largest oil producer, with significant new investment commitments of $13.5 billion to boost oil output to 2.1 million barrels per day by 2026.
The implementation of the Petroleum Industry Act (PIA) has introduced regulatory reforms to enhance transparency and attract investors, driving major projects forward.
Recent Final Investment Decisions (FIDs) in Nigeria include TotalEnergies’ $550 million Ubeta Gas Field Development and Shell’s $5 billion Bonga North Project. However, additional financing remains crucial to fully unlock Nigeria’s gas potential in the global energy transition.
At a recent Cross Industry Group (CIG) meeting in Florence, Italy, Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, urged International Oil Companies (IOCs) to ramp up their investments, emphasising that President Bola Tinubu’s administration has provided the necessary fiscal incentives, including Executive Orders favouring deepwater investments.
“The government has done its part by providing investment-friendly policies. Now, the ball is in the court of IOCs to make strategic investment decisions that will drive production and sustainability in the sector,” Lokpobiri stated.
He also called on operators to support local refining efforts, stressing that more refineries are coming onstream and will require a steady supply of crude oil.
On its part, Angola is actively diversifying its energy portfolio, with major deepwater projects in motion, including TotalEnergies’ $6 billion Kaminho Deepwater Project and Eni’s Agogo Integrated West Hub.
Angola is also set to finalise its first green hydrogen project by 2025, a 600 MW development led by Sonangol in collaboration with international partners. Additionally, the country is spearheading:
- The New Gas Consortium, its first non-associated gas project
- A $12 billion expansion of the Angola LNG plant to enhance gas monetisation
Ghana continues to strengthen its position in the energy sector with new investment commitments from Eni and Tullow Oil. Eni and the Ghana National Petroleum Corporation signed agreements in March to expand offshore exploration and optimise existing assets.
Tullow Oil, which operates the Jubilee and TEN fields, plans to launch a new drilling program in May 2025 to ensure sustained production growth. Beyond hydrocarbons, Ghana focuses on modernising infrastructure, expanding energy access, and investing in renewables to secure long-term energy stability.
As more African nations fulfil their capital commitments, the Africa Energy Bank is set to become a key driver of investment in the continent’s oil and gas sector. By providing tailored financing solutions, the bank is expected to:
- Bridge financing gaps
- Accelerate energy project development
- Enhance energy security
- Drive economic growth
With its launch anticipated in early 2025, the AEB is poised to redefine energy financing in Africa. It will ensure that oil-producing nations have the capital to sustain production and transition toward a diversified energy future.