Nigeria has won the rights to host the headquarters of the $5 billion Africa Energy Bank (AEB), which will be situated in Abuja, the nation’s capital.
The Africa Petroleum Producers’ Organization (APPO), in collaboration with the African Export-Import Bank (Afreximbank), had signed the documents at a ceremony in Cairo, Egypt, on June 3 for the establishment of the Africa Energy Bank.
The AEB is set up to facilitate, promote and finance the development of oil, gas and energy industries in Africa.
Nigeria is Africa’s biggest oil producer and has the largest gas reserves on the continent.
According to APPO, the establishment of the Bank will revolutionize Africa’s hydrocarbon industry, while African countries will not only be able to benefit from a new source of financing but will be able to reduce their reliance on foreign capital.
Announcing the successful bid on his official X (formerly Twitter) account on Thursday, the Nigerian Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, expressed delight on the development.
In a post on X, Lokpobiri wrote, “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.
“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!”
In April, Egypt withdrew its bid to host the Bank, leaving six countries on the continent – Nigeria, Ghana, South Africa, Benin, Cote D’Ivoire and Algeria to battle for the rights.
Earlier in June, the Nigerian government had expressed its readiness to host the headquarters of the AEB during the bid exercise, which took place at a dinner for the heads of mission of the envoys of members of the APPO in Abuja.
Speaking at the dinner, Lokpobiri had affirmed the country’s commitment towards fostering a collaborative environment that will enable the AEB to succeed and fulfil its mandate.
“We have achieved significant milestones, including a comprehensive assessment by the APPO Afrexim-Bank inspection team. Their positive evaluation underscores Nigeria’s readiness and capability to host the AEB… We are appealing to each of you to recognise the advantages of situating the AEB headquarters in Nigeria. Nigeria offers a strategic geographical location, robust infrastructure, and a dynamic energy sector,” he had stated.
The Nigerian government also noted that hosting the bank in the country will ensure proximity to key energy technocrats and experts, vital for implementing solutions to energy challenges on the continent.
The Africa Energy Bank aims to directly address funding challenges by providing an African solution to financing energy projects. And with $5 billion in initial capital raised from African signatories, the institution aims to close the funding gap by providing capital to oil and gas projects across the continent.
