Amb Nicholas Ella, the Permanent Secretary, Ministry of Petroleum Resources, at the opening session of the APPO Executive Board members meeting on Tuesday in Yaounde, Cameroon.
The Nigerian government has announced January 28, 2025, as the official launch date for the $5 billion Africa Energy Bank, set to operate out of Abuja, the capital.
This decision was disclosed by a Nigerian delegation led by Ambassador Nicholas Ella, Permanent Secretary of the Ministry of Petroleum Resources and Executive Board Member representing Nigeria at the African Petroleum Producers Organization (APPO).
The announcement took place during APPO’s 19th Executive Board meeting held on Wednesday in Yaounde, Cameroon.
In a statement released Friday by the Ministry of Petroleum Resources, Ambassador Ella reaffirmed Nigeria’s dedication to APPO’s mission and the rapid establishment of the energy bank in Abuja.
After a competitive bid involving Ghana, Algeria, South Africa, and Benin Republic, Nigeria was awarded the hosting rights for the Africa Energy Bank (AEB) Headquarters in July 2024. The AEB is envisioned as a crucial institution for addressing financing 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,” stated Ambassador Ella.
He further detailed Nigeria’s readiness for the bank’s establishment, noting, “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,” Ella stated, receiving applause from representatives of 13 member countries present at the meeting.
The bank’s operational start date will mark the 38th anniversary of APPO, an 18-member alliance focused on advancing Africa’s energy sector. The AEB is being established through a partnership between APPO and Afreximbank.
Providing further updates, Ambassador Ella reminded attendees that Nigeria’s Federal Executive Council, on June 25, 2024, “approved the hosting of the Bank.” He mentioned that the “ratification of both the Charter and Headquarters Agreement are in advanced stages. The FEC also endorsed the AEB’s Establishment Document, instructing the Attorney General and Minister of Justice to begin the ratification process.”
According to Ella, the Attorney General concluded the process on September 9, 2024, and has since sent the AEB Establishment Documents to the President for assent, after which they will be forwarded to APPO.
Regarding Nigeria’s financial commitment to the AEB, Ella noted that the country has been working to complete its equity contributions. “Apart from the earlier payment of $59,120,000.00, an additional $10 million was paid into APPO Account by the Federal Government of Nigeria last week. We intend to make full payment before the bank takes off.”
Ambassador Ella also advocated for the AEB’s establishment and funding within APPO’s budgetary plans, stating, “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.”
Responding to Nigeria’s progress report, APPO Secretary-General Dr. Omar Farouk Ibrahim confirmed that 50 percent of the funds required for AEB’s launch have been secured.
“I would like to urge APPO member countries to keep up the tempo for the Bank’s take-off,” said Dr. Ibrahim, who also explained that the bank would include three classes of shareholders, with APPO and Afreximbank as priority shareholders.
Egypt’s APPO Executive Board representative, Hisham Ahmed Selim, described Nigeria’s update as “encouraging,” acknowledging the country’s efforts towards the bank’s establishment.
