The Federal Government of Nigeria has scheduled January 28, 2025, as the launch date for the $5 billion Africa Energy Bank in Abuja, Ambassador Nicholas Ella has disclosed.
Ambassador Nicholas Ella who serves as the Permanent Secretary of the Ministry of Petroleum Resources and as Nigeria’s Executive Board Member at the African Petroleum Producers Organization (APPO), made the disclosure during the 19th Executive Board meeting of APPO, which was held in Yaounde, Cameroon, last week.
Ellah reaffirmed Nigeria’s determination to APPO’s principles and the prompt establishment of the energy bank, which seeks to address funding gaps within Africa’s oil and gas sector.
“I am pleased to address the Executive Board (EB) meeting on this very important subject matter – the takeoff of the Africa Energy Bank Headquarters in Abuja, Nigeria,” Ella said.
“As you are no doubt aware, the Headquarters building (of the Africa Energy Bank) was inspected by the Technical Team on 24th May 2024, and renovation works for its completion are ongoing. Nigeria is fully committed to delivering the building with furnishing to the bank in good time. We have the full support and cooperation of Mr President and our National Assembly to actualise this project in Nigeria,” he added, according to the Leadership newspaper.
It should be recalled that in July 2024, Nigeria was announced the winner of the hosting rights for the Africa Energy Bank (AEB) headquarters, after a competitive bid which involved Ghana, Algeria, South Africa, and Benin Republic. The bank is being sponsored in collaboration with Afreximbank.
The ambassador went on to elaborate on Nigeria’s preparedness for the establishment of the bank, stating the bank’s commencement of operations will coincide with the 38th anniversary of the African Petroleum Producers Organization (APPO), an alliance of 18 members aimed at enhancing Africa’s energy sector. This new bank is being created through a collaboration between APPO and the African Export-Import Bank (Afreximbank).
While giving further update, Ambassador Ella reminded the attendees that the Federal Executive Council of Nigeria approved the hosting of the Bank on June 25, 2024. He pointed that “ratification of both the Charter and Headquarters Agreement are in an advanced stage. In its decision, the FEC also approved and endorsed the Establishment Document of the AEB and instructed the Attorney General and Minister of Justice to commence with the process of ratification.
According to Ella, the Attorney General has concluded the process in September 2024 and has sent the AEB to the president for assent. “The Attorney General concluded the process on 9th September 2024 and transmitted the AEB Establishment Documents, which are currently with His Excellency, the President for his assent and which will be forwarded to APPO immediately.
“Apart from the earlier payment of $59,120,000:00, an additional $10 million was paid into the APPO Account by the FGN (Nigeria) 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 mobilising investments in oil and gas projects, which are vital for Africa’s economic growth and development,” Ella added.
APPO Secretary-General Dr. Omar Farouk Ibrahim confirmed that 50 percent of the necessary funds for the launch of the AEB have been obtained.
“I would like to urge APPO member countries to keep up the tempo for the Bank’s take-off,” Ibrahim said. Ibrahim further explained that the bank would include three classes of shareholders, with APPO and Afreximbank as top shareholders.
Hisham Ahmed Selim, Egypt’s representative on the APPO Executive Board, characterized Nigeria’s update as “encouraging,” recognizing the country’s efforts in establishing the bank.
