Nigeria Sets January 28 For $5bn Africa Energy Bank Takeoff

The Nigerian government has set 28th January 2025 as the deadline for the operationalisation of the $5 billion Africa Energy Bank in Abuja, the nation’s capital city.

A Nigerian delegation led by Nicholas Ella, the permanent secretary, Ministry of Petroleum Resources, and executive board member representing Nigeria at the African Petroleum Producers Organization (APPO), made the disclosure on Wednesday at the 19th Executive Board meeting of the Organisation in Yaounde, Cameroon, according to a statement issued on Friday by the ministry.

Ella reiterated Nigeria’s commitment to the ideals of APPO and the immediate setting up of the energy bank in Abuja.

Recall that Nigeria won the hosting right for the establishment of the Africa Energy Bank (AEB) Headquarters in July 2024, after it competed with Ghana, Algeria, South Africa, and Benin Republic.

The AEB aims to bridge financing gaps in the continent’s oil and gas industry.

“I am pleased to address the Executive Board (EB) meeting on this very important subject matter – the takeoff of the Africa Energy Bank Headquarters in Abuja, Nigeria.

“As you are no doubt aware, the Headquarters building (of the Africa Energy Bank) was inspected by the Technical Team on 24th 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 and cooperation of Mr President and our National Assembly to actualise this project in Nigeria,” Amb Ella said, drawing applause from representatives of 13-member countries who were at the meeting in Yaounde.

The ministry said the date for the Bank’s takeoff coincides with the 38th anniversary of the establishment of APPO, which is an 18-member country bloc that drives the development of the African energy industry.

The AEB is being established by APPO in collaboration with the AfreximBank.

Giving further insights on the level of Nigeria’s preparedness for the bank’s takeoff, the Permanent Secretary reminded the gathering that Nigeria’s Federal Executive Council on 25 June 2024, “approved the hosting of the Bank.”

He added that the “ratification of both the Charter and Headquarters Agreement are in advanced stage. In its decision, 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 added that the Attorney General had concluded the process on 9th September 2024 and transmitted the AEB Establishment Documents to President Bola Tinubu for his assent, disclosing that the assented document will be forwarded to APPO after the assent.

On equity contribution to the AEB, Amb Ella said Nigeria is currently making efforts to complete her own share of the equity contribution to the AEB.

“Apart from the earlier payment of $59,120,000:00, an additional $10 million was paid into APPO Account by the FGN (Nigeria) last week. We intend to make full payment before the bank takes off.

“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 Omar Farouk Ibrahim, said 50 per cent of the funds needed for the AEB takeoff was available.

“I would like to urge APPO member countries to keep up the tempo for the Bank’s takeoff,” Dr Ibrahim said.

Furthermore, he explained that the Bank would have three classes of shareholders with APPO and Afrexim occupying the priority shareholder position.

Responding to Nigeria’s presentation, the Permanent Secretary quoted the APPO Executive Board member from Egypt, Hisham Ahmed Selim, describing Nigeria’s explanation concerning preparations for the bank’s takeoff as “encouraging.”