The Nigerian government has announced that the $5 billion Africa Energy Bank (AEB) will begin operations on January 28, 2025, in Abuja.
This was revealed by the Permanent Secretary of the Ministry of Petroleum Resources Ambassador Nicholas Ella, at the 19th Executive Board meeting of the African Petroleum Producers Organization (APPO) in Yaounde, Cameroon.
On equity contribution to the AEB, Ambassador Ella said Nigeria is currently making efforts to complete her own share of the equity contribution to the AEB.
“Apart from the earlier payment of $59,120,000:00, an additional $10 million was paid into APPO Account by the Federal Government last week. We intend to make full payment before the bank takes off”
“Nigeria wishes to advocate for the establishment and funding of the Africa Energy Bank as part of APPO’s budgetary plans. This initiative would not only address the financial needs of the energy sector but also provide a platform for mobilizing investments in oil and gas projects, which are vital for Africa’s economic growth and development.”
Nigeria won the bid to host the AEB headquarters in July 2024, beating Ghana, Algeria, South Africa, and Benin Republic.
The bank aims to bridge financing gaps in Africa’s oil and gas industry.
The AEB’s launch coincides with APPO’s 38th anniversary and is a significant step towards driving Africa’s energy industry growth.
The bank will have three classes of shareholders, with APPO and Afrexim Bank holding priority positions.
APPO’s Secretary General, Dr. Omar Farouk Ibrahim, urged member countries to maintain momentum, while Egypt’s Hisham Ahmed Selim described Nigeria’s preparations as “encouraging.”
