THE African Energy Bank (AEB) is set to commence operations in Nigeria in April, with its headquarters located in Abuja.
The bank is expected to have an initial capital of $5 billion, with plans to scale up to $120 billion within five years.
Nigeria is hosting the AEB, which is a joint initiative of the African Petroleum Producers Organisation (APPO) and Afreximbank.
The bank’s operationalisation aims to address financing gaps for most oil and gas projects in Africa and help Nigeria’s upstream, mid-stream and downstream sectors source finance for its ambitious projects, as global banks prioritise clean energy funding over fossil fuels.
The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, disclosed this on Tuesday, February 3, at the ongoing Nigeria International Petroleum Summit (NIES) in Abuja.
Lokpobiri said the bank would start operations “by April at the latest”, as all factors causing delays, including the location of its headquarters, had been sorted out.
He disclosed that the Federal Government had completed the procurement, construction, and finishing of the bank’s headquarters.
“We are now formally handing over this refurbished African Energy Bank to the African Association of Petroleum Producers (APPO) and Afreximbank, having fulfilled all our commitments,” he said.
“Attempts were made to construct the bank three times. The first was discarded for being too enormous, and the second was not accepted because of its location. We are happy that we got this one right.
“It is paid for and furnished, and Nigeria is happy to hand over this well-furnished Africa Energy Bank building to APPO and Afreximbank, who are the enablers of the bank,” he added.
In November 2024, the Ministry of Petroleum Resources said the bank would commence operations on January 28, 2025, but the deadline was later shifted to the first quarter of the year.
In May 2025, the Nigeria Content Development and Monitoring Board (NCDMB) also said the bank would be open for business before the end of the second quarter (Q2) of 2025 — but the deadline was missed.
Other key benefits of the African Energy Bank
The bank is set to bring numerous benefits to Africa’s energy sector and economy.
Omowumi Iledare, a professor of petroleum economics and policy research, told The ICIR that the African Energy Bank could become a stabilising force if it focuses on downstream credit architecture.
“Its value lies in providing guarantees, long-term infrastructure funding, FX risk support, and liquidity mechanisms for energy markets. If it prioritises practical financing tools rather than prestige projects, it can reduce systemic risk in deregulated markets. Its relevance will depend entirely on execution and institutional discipline,” he stated.
The bank, APPO said, would focus on addressing energy poverty in Africa by financing energy projects, including renewable energy initiatives, to provide reliable and sustainable energy to millions of people in Africa.
The organisation stressed that the investment in the bank would stimulate economic growth, create jobs, and attract foreign investment.
“It will promote energy security by financing projects that enhance energy production, transmission, and distribution. It will also support Africa’s transition to cleaner energy sources, reduce greenhouse gas emissions and promote sustainable development,” APPO added.
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.