African Energy Bank to be launched by January 2025 — FG

The Federal Government has set January 28, 2025 as the deadline for the operation of the $5 billion African Energy Bank in the Nigerian capital, Abuja.

The Nigerian delegation led by Amb. Nicholas Agbo Ella, Deputy Secretary-General of the Ministry of Petroleum Resources and Executive Director representing Nigeria of the African Petroleum Producers Organization (APPO), announced the schedule at the 19th Executive Board meeting held in Yaoundé, Cameroon.

Amb. Ella highlighted Nigeria’s commitment to the ideals of APPO and the rapid establishment of an energy bank in Abuja.

He also said the African Energy Bank (AEB) aims to bridge the financing gap within the continent’s oil and gas industry.

“Nigeria won the right to establish the African Energy Bank (AEB) headquarters in July 2024 after competing with Ghana, Algeria, South Africa, and the Republic of Benin.

“I am delighted to address the Executive Board (EB) meeting on this very important topic: the launch of the African Energy Bank headquarters in Abuja, Nigeria.”

“As you know, the (African Energy Bank) headquarters building was inspected by technical teams on May 24, 2024, and renovation work is underway to bring it to completion. Nigeria is committed to delivering buildings and furniture to banks in a timely manner.

“We have the full support and cooperation of His Excellency President Bola Ahmed Tinubu (GCFR) and the National Assembly to realize this project in Nigeria.” he said

Bank equity contribution in Nigeria

On Nigeria’s equity contribution to the African Energy Bank, Amb. Ella said Nigeria was actively working to do its part.

He noted that the federal government contributed an additional $10 million to the APPO account last week, in addition to the $59.1 million paid earlier.

He added that Nigeria plans to complete payment in full before the bank becomes operational.

“In addition to the $59,120,000:00 previously paid, an additional $10 million was paid into the APPO account by FGN (Nigeria) last week. We plan to pay in full before the bank takes off.

“Nigeria wants to advocate for the establishment and funding of the African Energy Bank as part of the APPO budget plan. “This plan will not only address the financial needs of the energy sector, but also provide a platform to mobilize investment in oil and gas projects that are essential to Africa’s economic growth and development.” Ella said.

What you need to know

The $5 billion African Energy Bank is the brainchild of the African Petroleum Producers Organization (APPO).

To date, APPO has a total of 18 members across Africa, all of whom are oil or gas producers or both.