The Federal Government has set January 28, 2025, as the deadline for operationalizing the $5 billion Africa Energy Bank in Abuja, Nigeria’s capital.
A Nigerian delegation, led by Amb. Nicholas Agbo Ella, announced the timeline during the 19th Executive Board Meeting of the African Petroleum Producers Organization (APPO) in Yaounde, Cameroon.
- Amb. Ella emphasized Nigeria’s commitment to APPO’s ideals and the prompt establishment of the energy bank in Abuja.
- The Africa Energy Bank (AEB) aims to bridge financing gaps within the continent’s oil and gas industry.
- Nigeria won the hosting right for the establishment of the AEB Headquarters in July 2024, after competing with Ghana, Algeria, South Africa, and Benin Republic.
- Amb. Ella expressed satisfaction in addressing the Executive Board meeting on the take-off of the Africa Energy Bank Headquarters in Abuja.
- The Headquarters building was inspected by the Technical Team on May 24, 2024, and renovation works for its completion are ongoing.
- Nigeria is fully committed to delivering the building with furnishings to the bank in good time.
- “We have the full support and cooperation of Mr. President, His Excellency Bola Ahmed Tinubu GCFR, and our National Assembly to actualize this project in Nigeria,” Amb. Ella stated.
- Regarding Nigeria’s equity contribution to the Africa Energy Bank, Amb. Ella mentioned that Nigeria is actively working to fulfill its share.
- He noted that, in addition to an earlier payment of $59.1 million, the Federal Government made an additional $10 million contribution to the APPO account last week. – Amb. Ella added that Nigeria intends to complete the full payment before the bank becomes operational.
- “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,” he said.
- “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,” Ella concluded.
What You Should Know:The Africa Energy Bank, with a total capital of $5 billion, is an initiative of the Africa Petroleum Producers’ Organization (APPO). This bank, which is co-funded by Afreximbank, aims to address the critical funding gap emerging from the withdrawal of traditional financiers from oil and gas projects across Africa.Recent reports indicate that Afreximbank has committed a substantial investment of $1.7 billion to the Energy Bank, positioning itself as one of the primary investors in this financial institution. Currently, APPO comprises 18 member nations throughout Africa, all of which are either oil or gas producers, or both. This collective effort underscores the commitment to enhance funding and support for the continent’s energy sector.
