Six Nations Oppose Siting African Energy Bank Headquarters in Nigeria

By Adedapo Adesanya

Nigeria is facing opposition from six countries to have the proposed headquarters of the first African Energy Bank built in the country, which is Africa’s largest oil producer.

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.

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.

The bank’s goal will be to provide critical financing for new and existing oil and gas projects, as well as energy developments across the entire value chain. This will help strengthen the continent’s energy sector.

The proposed African Energy Bank will operate in the same way as the APPO-created Africa Energy Investment Corporation – a developmental financial institution created to channel resources towards the development of Africa’s energy sector.

However, six African countries do not want Nigeria to be the headquarters of the lender due to certain limitations.

Parts of the requirements to be the headquarters of the bank are accessibility, including by air from any country, presence of amenities like hospitals, and educational institutions. Also, the nation must have signed and ratified the establishment agreement of the charter of the bank must provide a befitting proposed headquarters structure, and must pay their financial obligations.

According to ThisDay Newspapers, the sextuplet nations of Ghana, Egypt, South Africa, Benin Republic, Cote d’Ivoire as well as Algeria are mounting fierce resistance against Nigeria.

The countries, according to the newspaper are lobbying the power brokers who will make the final resolution on where the headquarters of the bank will be situated by the end of this month (March).

The decision will be taken by Nigeria and the six opposers as well as other nations like Angola, Cameroon, Republic of Congo, Democratic Republic of Congo, Equatorial Guinea, Libya, Niger Republic and Senegal. Venezuela is an honorary member and will also be involved.

Nigeria’s energy sector has faced its share of worries as International Oil Companies (IOCs) divest their businesses just as the threats of oil theft and underinvestment affect the once-thriving oil sector.