Nigeria has been selected as the headquarters of the $5 billion Africa Energy Bank (AEB), Heineken Lokpobiri, the Minister of State Petroleum Resources (Oil), announced Thursday on his official X handle, adding that other countries that bidded for the headquarters of the bank included Ghana, Algeria, and Benin while South Africa and Ivory Coast were said not to have met the minimum requirements.
“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 in 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,” Lokpobiri said.
“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!” he added.
The energy bank is an idea between the Africa Export and Import Bank (Afreximbank) and African Petroleum Producers’ Organisation (APPO).
The African Petroleum Producers’ Organization (APPO) (formerly called the African Petroleum Producers’ Association, APPA) was established on January 27, 1987 in Lagos, Nigeria, to serve as a platform for cooperation and harmonization of efforts, collaboration, sharing of knowledge and expertise among African oil producing countries.
Other parties to the coming on board of the new energy bank include government agencies, National Oil Companies (NOCs), International Oil Companies (IOCs), project developers, private equity funds, DFIs, and International State Agencies.
“Africa Energy Bank was created to finance the exploitation of the energy resources of the African continent. It aims to give priority to the domestic market to stem the threats that the energy transition poses to African economies. The priority beneficiaries of its services will be the states that have ratified its documents of establishment,” APPO said.
“The AEB is clearly positioned as a development bank whose leitmotif is to finance or assist economic development projects. To do this, the Bank is counting on an initial capital of $5 billion, which will be able to grow very quickly, because of the enormous needs of the sector. APPO Member Countries, alongside Afreximbank, are the main contributors,” APPO added.
The body highlighted that the Council of Ministers allocated to each Member Country the minimum amount of $83.33 million as a share in the bank’s capitalization, noting that Nigeria has started to pay its own capital contribution to the continental energy bank.
