By Felix Khanoba
In a significant achievement, Nigeria has won the bid to host the headquarters of the Africa Energy Bank (AEB) in its capital city, Abuja.
The announcement was made by Nigeria’s Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, following the 45th extraordinary session of the African Petroleum Producers Organisation (APPO) ministerial committee meeting.
The Africa Energy Bank, an initiative by a coalition of 18 oil and gas producing countries under APPO, aims to finance energy projects across the African continent. The selection process was highly competitive, with Nigeria outperforming Ghana, Côte d’Ivoire, Benin Republic, Algeria, and Egypt.
Senator Lokpobiri expressed optimism about the AEB’s potential to address funding gaps in Africa’s energy sector. He attributed Nigeria’s success in securing the hosting rights to the support and resources provided by President Bola Tinubu and the collaborative efforts of APPO member countries.
A statement from the Permanent Secretary of the Ministry of Petroleum Resources, Amb Nicholas Ella, highlighted the critical roles played by the Nigerian National Petroleum Corporation Limited (NNPCL) and the Nigerian Content Development and Monitoring Board (NCDMB) in Nigeria’s bid.
The virtual meeting, chaired by the Republic of Congo’s Minister of Hydrocarbons and APPO Council of Ministers’ alternate President, His Excellency Bruno Jean-Richard Itoua, saw the APPO Council consider recommendations from the AEB Headquarters Ministerial Selection Committee.
This committee, chaired by Libya’s Minister of Oil and Gas, His Excellency Mohamed Oun, included ministers from Angola, Senegal, Venezuela, and the President of Afreximbank, Benedict Oramah.
The decision to select Nigeria was based on several criteria, including socio-economic factors, security, and accessibility. Mr. Itoua congratulated Nigeria and advised the country to ensure all necessary facilities are in place for the bank’s effective operation.
The AEB, a joint initiative by APPO and Afreximbank, aims to address the financial challenges faced by Africa’s oil and gas industry amidst the global energy transition. It will serve as a supranational financial institution similar to other specialized development finance institutions, with an initial share capital of $5 billion. This capital will be subscribed to by APPO member countries, their national oil and gas companies, and other investors committed to the bank’s philosophy.
In May 2024, a technical inspection team from APPO and Afreximbank validated Nigeria’s readiness to host the AEB headquarters. The bank, set to be established in July 2024, will finance Africa’s hydrocarbon projects and support the continent’s energy transition and net-zero 2060 commitments.
