Nigeria has been selected to host the headquarters of the Africa Energy Bank (AEB), a fit seen as a massive win for the country.
The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, disclosed this while speaking to journalists after a virtual meeting of the council of ministers of the African Petroleum Producers Organisation (APPO) on Thursday.
The new headquarters will be located in Nigeria’s capital city, Abuja.
The emergence of Nigeria as the preferred host nation amidst rigid competition from Ghana, Benin, Algeria, South Africa, and Cote d’Ivoire highlights Nigeria’s robust energy sector and its strategic vision for the continent’s energy future, Lokpobiri said.
The bank, according to the government, would facilitate access to funding for energy projects, thereby promoting economic growth and enhancing energy security.
Mr Lokpobiri stressed that this initiative aligns with the broader objectives of the African Union’s Agenda 2063, aiming for a prosperous and self-sustaining Africa. He said:
“I am delighted to share that Nigeria has been selected to host the headquarters of the African Energy Bank. This prestigious honour is a testament to our country’s leadership and commitment in the energy sector.
“As the Minister for Petroleum Resources (Oil), I am incredibly proud of this achievement. The African Energy Bank will be a cornerstone for financing and advancing energy projects across Africa, promoting innovation, sustainability, and economic growth.
“This is a remarkable victory for Nigeria and the entire African continent. It symbolises our collective efforts to harness and develop our rich energy resources for a brighter, more sustainable future,” Mr Lokpobiri said.
He assured Nigerians and Africans at large that the establishment of the AEB would be a beacon of progress for the entire continent and would mark a transformative era in meeting energy needs.
“We are committed to ensuring that this bank will not only move Nigeria forward but will also be a beacon of progress for the entire continent. Our goal is to foster sustainable energy solutions that are both innovative and inclusive,” he added.
He commented on the joint spirit of the African Petroleum Producers Organisation (APPO) members and their shared vision for a united, energy-secured Africa.
Mr Lokpobiri reiterated his gratitude to Mr Tinubu for his unwavering support and to the council of ministers for their trust in Nigeria’s ability to lead this pivotal initiative.
“Thank you to everyone who made this possible. Together, we are shaping the future of energy in Africa, starting right here in Nigeria,” he said.
The Nigerian government expressed readiness to host the bank’s headquarters last month during a bidding exercise which took place at a dinner for the heads of mission of the envoys of members of APPO.
Africa Energy Bank
The AEB is a joint initiative by APPO and Afrexim bank which aims to address the financial challenges faced by Africa’s oil and gas industry amidst the global energy transition. It will serve as a supranational financial institution similar to other specialised development finance institutions, with an initial share capital of $5 billion. This capital will be subscribed to by APPO member countries, their national oil and gas companies, and other investors committed to the bank’s philosophy.
In May 2024, a technical inspection team from APPO and Afrexim bank validated Nigeria’s readiness to host the AEB headquarters. The bank, set to be established in July 2024, will finance Africa’s hydrocarbon projects and support the continent’s energy transition and net-zero 2060 commitments.
Nigeria’s selection as the prime location is an opportunity for the African Energy Bank to harness the continent’s vast energy potential and drive sustainable development in countries.
