The Federal Government of Nigeria has announced that Nigeria has been selected to host the headquarters of the $5 billion African Energy Bank. This decision was made during a virtual extraordinary meeting of the Council of Ministers of the African Petroleum Producers Organisation (APPO).
Securing the Hosting Rights
The announcement was made by the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, in Abuja. Nigeria emerged victorious amidst strong competition from Ghana, Benin, Algeria, South Africa, and Cote D’Ivoire.
“I want to announce to Nigerians that the Council of Ministers of the African Petroleum Producers Organisation has just approved Nigeria to host the headquarters of the African Energy Bank,” Lokpobiri stated.
Addressing Funding Challenges
Senator Lokpobiri highlighted the significant funding challenges faced by African oil-producing countries. He emphasized the need for Africa to find solutions to finance its oil and gas investments, which led to the conception of the African Energy Bank.
“We’ve been talking with our counterparts from other countries. Six countries, including Nigeria, were competing to host the energy bank. Ghana, Algeria, Benin Republic, and others were competing with us, but today I want to thank all of them, APPO, and Nigerians for their support,” Lokpobiri added.
Presidential Support
Senator Lokpobiri credited President Bola Tinubu’s unwavering support as a crucial factor in securing the hosting rights. “I also want to specifically thank the President who gave us the full support to ensure that we get to this point where APPO has given us the hosting right for the African Energy Bank. This is not going to be a bank for Nigeria alone, but a bank for the entire African continent,” he said.
Strategic Investment
In May, The PUNCH reported that President Bola Tinubu had approved a $100 million investment by Nigeria for class A shares in the proposed African Energy Bank. This approval was announced by the Federal Ministry of Petroleum Resources (FMPR).
The Permanent Secretary of FMPR, Nicholas Ella, noted, “President Bola Tinubu has approved a $100m investment from four agencies of the Ministry of Petroleum Resources, exceeding the minimum equity requirement of $83.33m for class A shares. This decision positions Nigeria favourably to win the bid, potentially reshaping the country’s oil and gas ecosystem.”
Enhancing Africa’s Energy Sector
The establishment of the African Energy Bank is seen as a pivotal move to support Africa’s hydrocarbon deposits of oil, gas, and condensates, as well as to aid the continent’s energy transition and net zero 2060 commitments. The bank will serve as a crucial financial institution for the entire African continent, aiming to address funding gaps and promote sustainable energy development.