Nigeria sets January 2025 for $5bn Africa Energy Bank take off
The Federal Government has set Jan. 28, 2025 as the deadline for the operationalisation of the five billion dollars Africa Energy Bank (AEB).
The bank would be domiciled in Abuja, the Nigeria’s capital city.
Amb. Nicholas Ella, Permanent Secretary, Ministry of Petroleum Resources and Executive Board Member, who led a delegation representing Nigeria at the African Petroleum Producers Organisation (APPO), disclosed this at the APPO’s 19th Executive Board meeting.
The meeting which had representatives of 13 member countries was held in Yaounde, Cameroon.
Ella, in a statement on Friday, reiterated Nigeria’s commitment to the ideals of APPO and the immediate setting up of the AEB in Abuja.
Nigeria won the hosting right for the establishment of the AEB Headquarters in July 2024, after it competed with Ghana, Algeria, South Africa, and Benin Republic.
The AEB which is being established by APPO in collaboration with the Afriexim Bank, aims to bridge financing gaps in the continent’s oil and gas industry.
“The Headquarters building (of the Africa Energy Bank) was inspected by the Technical Team in May 2024, and renovation works for its completion is ongoing.
“Nigeria is fully committed to delivering the building with furnishing to the bank in good time. We have the full support of President Bola Tinubu and our National Assembly to actualise this project in Nigeria,” Ella said.
Giving further insights, Ella said the Federal Executive Council (FEC), on June 25, 2024, approved the hosting of the bank while the ratification of the Charter and Headquarter’s Agreement are in advanced stage.
He said the FEC also approved and endorsed the Establishment Document of the AEB, and instructed the Attorney General and Minister of Justice, to commence with the process of ratification.
“The Attorney General concluded the process on Sept. 9, 2024 and transmitted the AEB Establishment Documents, currently with the President for his assent. Once that is done, it will be forwarded to APPO,” he added.
On equity contribution to the AEB, Ella said Nigeria was making efforts to complete its share of the equity contribution to the AEB.
He said apart from the earlier payment of 59.1 million dollars, an additional 10 million dollars was paid into APPO Account by the federal government last week, with the intention to make full payment before the bank takeoff.
“Nigeria wishes to advocate for the establishment and funding of the Africa Energy Bank as part of APPO’s budgetary plans.
“This initiative would not only address the financial needs of the energy sector but also provide a platform for mobilising investments in oil and gas projects, which are vital for Africa’s economic growth and development,” he said.
In reaction to Nigeria’s update on preparations for the bank’s operationalisation, the Secretary-General of APPO, Dr Farouk Ibrahim, said 50 per cent of the funds needed for the AEB take off was available.
Ibrahim, who urged APPO member countries to keep up the tempo for the bank’s take off, explained that it would have three classes of shareholders with APPO and Afrexim occupying the priority shareholder position.
Responding to Nigeria’s presentation, the APPO Executive Board member from Egypt, Hisham Selim, described Nigeria’s explanation concerning preparations for bank’s take off as “encouraging.”
The date for the AEB’s take-off coincides with the 38th anniversary of the establishment of APPO, an 18-member country bloc that drives the development of the African energy industry.
