By Adedapo Adesanya
Nigeria has finally emerged victorious to host the headquarters of the African Energy Bank despite facing opposition.
The Minister of State for Petroleum Resources (Oil), Mr Heineken Lokpobori, announced this on X, formerly known as Twitter, on Thursday.
“I am delighted to share that Nigeria has been selected to host the headquarters of the African Energy Bank! This prestigious honour is a testament to our country’s leadership and commitment to the energy sector.
“As the Minister for Petroleum Resources[Oil], I am incredibly proud of this achievement. The African Energy Bank will be a cornerstone for financing and advancing energy projects across Africa, promoting innovation, sustainability, and economic growth,” he said.
In May 2022, the African Export-Import Bank (Afreximbank) and the African Petroleum Producers Organization (APPO) signed a Memorandum of Understanding (MoU) for the establishment of a multi-billion Dollar African energy bank.
An initial capital of $5 billion was provided for the institution will scale up private-sector investment in African oil and gas projects and catalyse Africa-directed investment.
However, the siting of the bank was a core issue and with Thursday’s announcement, Mr Lokpobori said the move was a victory for the country which is Africa’s largest oil producer as it would help shape the future of energy in Africa.
“This is a remarkable victory for Nigeria and the entire African continent. It symbolizes our collective efforts to harness and develop our rich energy resources for a brighter, more sustainable future.
“Thank you to everyone who made this possible. Together, we are shaping the future of energy in Africa, starting right here in Nigeria.”
The emergence of Nigeria settles opposition faced by six African countries that do not want Nigeria to be the headquarters of the lender due to certain limitations. Ghana, Egypt, South Africa, Benin Republic, Cote d’Ivoire as well as Algeria were the countries that indicated opposition.
The objective of the African Energy Bank will be to provide essential finance for oil and gas projects, both new and old, as well as energy advancements throughout the full value chain. The energy industry on the continent will positively benefit from this.
