The Nigerian government has announced that the $5 billion Africa Energy Bank (AEB) will officially launch on January 28, 2025, in Abuja, marking a significant step in addressing financing gaps within Africa’s oil and gas sector.
This announcement was made by Ambassador Nicholas Ella, Nigeria’s Permanent Secretary of the Ministry of Petroleum Resources, during the 19th Executive Board meeting of the African Petroleum Producers Organization (APPO) in Yaoundé, Cameroon. Ella emphasized Nigeria’s dedication to APPO’s objectives and the swift establishment of the energy bank, which is expected to play a crucial role in mobilizing investments for the continent’s energy industry.
In July 2024, Nigeria secured the hosting rights for the AEB headquarters after competing against several countries, including Ghana and Algeria. Ella confirmed that renovations for the bank’s headquarters are underway and expressed the Nigerian government’s commitment to complete the project promptly with full backing from the President and National Assembly.
The bank’s launch date coincides with the 38th anniversary of APPO, which consists of 18 member countries focused on advancing Africa’s energy development. Ella reported that the ratification process for the AEB’s charter is nearing completion, with necessary documents currently awaiting presidential assent.
In terms of equity contributions, Nigeria has already paid $59.12 million, with an additional $10 million recently deposited into the APPO account. The government plans to fulfill its financial obligations before the bank’s launch.
Omar Farouk Ibrahim, APPO Secretary General, indicated that 50% of the required funding for the AEB’s inception is already secured. He urged member countries to maintain momentum toward the bank’s establishment, which is anticipated to enhance financial support and investment opportunities within the African energy sector.