By John Ikani
Nigeria’s government has marked January 28, 2025, as the official start date for the Africa Energy Bank, a $5 billion initiative to support the continent’s oil and gas sectors, to be based in Abuja.
A Nigerian delegation, led by Ambassador Nicholas Agbo Ella, Permanent Secretary of the Ministry of Petroleum Resources, shared this timeline at the African Petroleum Producers Organization’s (APPO) Executive Board Meeting in Yaounde, Cameroon.
Ella emphasized Nigeria’s dedication to realizing APPO’s vision and confirmed that Abuja is on track to host the bank on schedule.
The Africa Energy Bank aims to bridge financing gaps for Africa’s energy industries, enabling greater access to resources critical for oil and gas production.
“Nigeria won the hosting right for the Africa Energy Bank (AEB) Headquarters in July 2024, after it competed with Ghana, Algeria, South Africa, and Benin Republic.”
“I am pleased to address the Executive Board (EB) meeting on this very important subject matter – the take-off of the Africa Energy Bank Headquarters in Abuja, Nigeria.”
“As you are no doubt aware, the Headquarters building was inspected by the Technical Team on May 24, 2024, and renovation works for its completion are ongoing. Nigeria is fully committed to delivering the building with furnishing to the bank in good time.”
Ella shared that the government’s recent $10 million payment, which follows an earlier $59.1 million contribution, underscores Nigeria’s commitment to seeing the bank succeed. Full payment is expected before operations begin.
“We intend to make full payment before the bank takes off,” he added.
Nigeria also proposed that APPO’s budget allocate funds toward establishing and sustaining the bank, aiming to create a reliable source of financial support for Africa’s energy needs and to drive investments in oil and gas, vital for economic progress.
An Energy Bank for Africa’s Future
Launched under the guidance of APPO and with substantial support from Afreximbank, the Africa Energy Bank seeks to step in as international investors withdraw from Africa’s energy sectors.
Afreximbank has already pledged $1.7 billion toward the bank’s establishment, positioning it as a major stakeholder.
With 18 member nations, APPO consists of countries across Africa that are producers of oil, gas, or both, all working toward regional economic and energy development.
