- Nigeria has announced the official launch of the $5 billion Africa Energy Bank, set to begin operations on January 28, 2025, to support energy development across Africa.
- Nigeria has committed significant financial contributions to the bank, with renovations underway for its Abuja headquarters before the launch.
Nigeria has officially announced the launch of the Africa Energy Bank (AEB), a $5 billion initiative to boost energy access and development across the African continent. The bank is scheduled to begin operations on January 28, 2025, a significant milestone in addressing financing gaps in Africa’s oil and gas sectors. The announcement was made during the 19th Executive Board meeting of the African Petroleum Producers Organization (APPO) in Yaoundé, Cameroon.
Headquartered in Abuja, Nigeria, the Africa Energy Bank will focus on bridging funding gaps in the continent’s hydrocarbon projects, offering crucial financial support for oil and gas developments across Africa. Ambassador Nicholas Ella, Permanent Secretary of Nigeria’s Federal Ministry of Petroleum Resources, expressed Nigeria’s enthusiasm for the project, emphasising the country’s successful bid to host the bank’s headquarters among several competing nations. “Nigeria is fully committed to delivering the bank’s headquarters and ensuring that it meets operational requirements in good time,” he said.
A technical team has already inspected the bank’s headquarters building, and renovations are underway to ensure the facility is ready for the bank’s launch. Ambassador Ella confirmed that Nigeria is on track to complete the renovations and furnish the building promptly.
Nigeria has made significant financial contributions to establish the AEB, including an initial $59.12 million equity contribution approved by the Federal Executive Council and an additional $10 million deposited into the APPO account. This financial backing demonstrates Nigeria’s commitment to the bank’s success, with plans to complete full payment before the bank’s official launch.
The announcement has been widely welcomed by APPO stakeholders, including Dr Farouk Ibrahim, APPO’s Secretary General, who revealed that 50% of the necessary funds for the bank’s operations have already been secured. He urged APPO member countries to continue their efforts, stating, “I encourage all member countries to maintain the momentum to ensure the bank’s smooth take-off.”
The launch of the Africa Energy Bank is expected to play a pivotal role in addressing the continent’s energy challenges and supporting the sustainable development of its oil and gas industries.