In a significant development for the African energy sector, the African Petroleum Producers’ Organization (APPO) has chosen Nigeria to host the headquarters of the newly established Africa Energy Bank (AEB). With an initial share capital of $5 billion, the AEB aims to address the funding challenges faced by Africa’s oil and gas industry amid the global energy transition.
“The selection of Nigeria to host the AEB is a great milestone for the bank,” said NJ Ayuk, Executive Chairman of the African Energy Chamber. “This also challenges Nigeria to live up to its true potential in getting its own home-based energy industry to work. The massive energy reserves available in the country will only support the bank and help drive it.”
The AEB will provide funds for African energy projects, including emerging oil and gas projects across the continent. As a supranational institution, it will streamline funding for African projects, placing the continent on track for widespread industrialization and economic growth.
Nigeria’s selection followed a meticulous review process, with the decision made during the 45th Extraordinary Session of the APPO Ministerial Council. The country’s Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, assured the Council that Nigeria will provide the necessary facilities for the bank’s timely and effective establishment.
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“Nigeria has been a long-standing producer and innovator of oil and gas projects on the continent,” said Lokpobiri. “We are committed to supporting the AEB and ensuring its success.”
The establishment of the AEB in Nigeria is especially appealing given the recent financial support from international institutions.
Last month, the World Bank approved a $2.25 billion package to assist Nigeria in improving its oil revenue management, ensuring fiscal sustainability, cultivating economic growth, and enhancing public services.
“This financial endorsement enhances investor confidence and signals strong international support for Nigeria’s economic development,” said Ayuk.
The African Energy Chamber congratulates Nigeria on this significant achievement and expresses its full support for the decision. The Chamber believes that the AEB will play a crucial role in driving Africa’s energy sector growth and attracting investments in the industry.
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