THE Nigerian government has contributed $69.1 million part equity funding to the Africa Energy Bank. It has also set a first quarter(Q1) target for the take-off of the Bank in Nigeria’s federal capital Territory, Abuja.
The government has also called on other African Petroleum Producers Organisation (APPO) member countries to accelerate their financial commitments to the bank to facilitate the take-off at the scheduled time.
Nigeria’s minister of state for petroleum resources (Oil), Heineken Lokpobiri, while speaking to the ministers of the 18 APPO member States, reaffirmed Nigeria’s commitment to the bank’s establishment.
A statement issued by Nneamaka Okafor, the special assistant to the minister on media and communications, on Saturday, November 2, said, “With preparations progressing steadily, the bank is expected to launch operations in the first quarter of 2025, a move that represents a major advancement in Africa’s energy sector.”
Lokpobiri expressed Nigeria’s enthusiasm for the project, saying “We are prepared to host the Africa Energy Bank, and our dedication to enhancing funding for Africa’s energy sector remains unwavering.”
The ICIR reports that a cornerstone of the Bank’s mission is to bridge financing gaps within Africa’s oil and gas industry, facilitating advancements in energy infrastructure across the continent.
Lokpobiri emphasised that the Federal Government, under President Bola Ahmed Tinubu’s leadership, has taken significant steps to lay the groundwork for the Bank’s strategic objectives.
“Our commitment is underscored by Nigeria’s contribution of $69.1 million in equity funding to the Africa Energy Bank, which demonstrates our leadership role in supporting critical energy initiatives on the continent,” he noted.
Beyond financial contributions, Nigeria has also formally signed and ratified the AEB Establishment Agreement and Charter, a development that APPO has praised as a significant leap toward establishing the Bank. With the Treaty now in effect, the legal and operational framework is set, paving the way for the AEB’s launch and enabling it to advance its objectives of enhancing energy security and promoting sustainable development across the continent.
Lokpobiri further called on other APPO member countries to join Nigeria in accelerating their financial commitments to the Bank. “I urge all member countries to expedite their subscription and payment of their allocated shares to the AEB. Together, we can achieve remarkable advancements in our energy sectors and establish ourselves as a continental energy hub,” he stated.
The Africa Energy Bank represents a unified effort to support Africa’s long-term energy security, and Nigeria’s commitment as a host nation underscores its dedication to fostering regional energy independence. With final preparations underway, Nigeria is poised to welcome the AEB, bringing the continent closer to a future where sustainable energy infrastructure is within reach for all.
An oil sector expert, and the President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) Billy Gillis-Harry who spoke on the development told the ICIR that facility from the bank at a single-digit interest rate will gradually impact fuel price stability in Nigeria.
“We need a bank like this to enable our business in the petroleum retail sub-sector. If we can access facility from them at a single digit interest rate, it will help gradually stabilise the fuel price which is largely being affected by exchange rate volatility problems, “Billy Gillis-Harry said.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.