By John Ikani
The African Petroleum Producers’ Organisation (APPO) is calling on its member countries to step up and fulfill their financial obligations to establish the Africa Energy Bank (AEB).
Last week, Nigeria secured the hosting rights for the bank, with its headquarters planned for Abuja, the nation’s capital.
To ensure a September 2024 launch, APPO Secretary General Dr. Umar Farouk Ibrahim urged oil-producing member countries to contribute their $83 million subscription fees.
The call to action came during the 18th ordinary meeting of the APPO executive board in Brazzaville, Republic of Congo.
Leading the Nigerian delegation was Ambassador Nicholas Ella, Permanent Secretary of the Ministry of Petroleum Resources. In a statement released by Amb. Ella, Dr. Ibrahim reiterated the APPO council of ministers’ decision to award Nigeria hosting rights for the AEB.
“We’re fully committed to the council of ministers’ resolutions,” Dr. Ibrahim stated. “We’ll redouble our efforts to secure the necessary funds to launch the Africa Energy Bank.”
He revealed that oil-producing member countries have already initiated talks with the Nigerian government to expedite the bank’s establishment.
Discussions will focus on finalizing the bank’s building and preparing the host country agreement for signing. With one member country already signed onto the establishment agreement, only one more signature is needed to proceed.
Nigerian representative Amb. Ella expressed President Bola Tinubu’s appreciation for member states’ support and confidence in Nigeria’s bid. He reaffirmed Nigeria’s commitment to the collective goal of enhancing Africa’s energy security.
“This gathering of APPO’s 18 member countries demonstrates our dedication to fostering unity, cooperation, and sustainable development within the African energy sector,” Amb. Ella noted.
He pledged continued collaboration with other members to address Africa’s energy needs by financing oil and gas projects. Amb. Ella urged member countries to “leverage our collective strength to build a brighter, more prosperous future for Africa.”
“Together, we can create an institution that addresses the financial needs of our energy projects while championing sustainable development, environmental stewardship, and economic inclusivity across Africa,” he added.
During discussions on Africa’s energy future, Algerian representative Remini Amine highlighted the importance of local content, skilled workforce development, and infrastructure investment in unlocking the continent’s energy potential.
APPO members agreed that the Africa Energy Bank would play a crucial role in bridging funding gaps within the energy sector.
Dr. Ibe Kachikwu, former Nigerian Minister of State Petroleum Resources, proposed a ten-year plan for the energy industry to usher in an “open era” for investment.
He also advised APPO to focus on expanding the bank’s capital base before allocating funds for investments.
The week-long event emphasized the vital role of national oil companies (NOCs) in leading crude oil production and refining to meet local consumption demands.
The Africa Energy Bank, a collaborative effort between the African Petroleum Producers Organisation and Afreximbank, holds significant promise for Africa’s energy future.
