General
Nigeria Injects $69.1m into African Energy Bank
By Adedapo Adesanya
Nigeria has reaffirmed its commitment to hosting the Africa Energy Bank (AEB) by contributing $69.1 million in equity funding for the take-off of the bank.
This was disclosed by the Minister of State for Petroleum Resources (Oil), Mr Heineken Lokpobiri has announced.
According to the Minister, the investment underscores Nigeria’s leadership role in promoting continental energy initiatives and bridging critical financing gaps in Africa’s oil and gas industry.
The AEB, with an initial share capital of $5 billion, aims to facilitate access to funding for energy projects across the continent, encompassing both fossil fuels and renewable energy sources.
Business Post had reported that Nigeria was selected as the host country, after fighting off opposition from other countries like Ghana and Egypt. The lender is expected to streamline funding for African projects, driving industrialization and economic growth.
Speaking at the 46th Ordinary Session of the Ministerial Council of the African Petroleum Producers’ Organisation (APPO) in Yaounde, Cameroon, Mr Lokpobiri emphasised Nigeria’s commitment to strengthening funding for the energy sector and advancing energy infrastructure across the continent.
The Minister also urged APPO member countries to expedite their subscription and payment of their allocated shares to the bank and reaffirmed Nigeria’s dedication to ensuring energy security and sustainable development in Africa.
“I am pleased to reaffirm our country’s readiness to host the Africa Energy Bank following our successful bid for the headquarters in July 2024. Our preparations are in top gear ahead of the operational launch of the Bank, now set for the first quarter of 2025.
“I am proud to report that Nigeria has already demonstrated its commitment by contributing $69.1 million in equity funding to the AEB. This investment underscores our leadership role in promoting continental energy initiatives and highlights our determination to bridge critical financing gaps in Africa’s oil and gas industry,” he said.
He added that Nigeria under President Bola Ahmed Tinubu has also signed and ratified the Establishment Agreement and Charter, a move APPO commends Nigeria for as significant progress in the establishment of the AEB.
“With the Treaty now officially in force, we have laid a strong foundation for the Bank’s strategic goals. I urge all member countries to expedite their subscription and payment of their allocated shares to the AEB, as together we can achieve remarkable advancements in our energy sectors and solidify our position as a continental energy hub,” Mr Lokpobiri said.
