Nigeria Sets January 28, 2025, for Launch of $5 Billion Africa Energy Bank
The announcement was made by Nicholas Ella, Nigeria’s Permanent Secretary of the Ministry of Petroleum Resources and executive board member representing Nigeria in the African Petroleum Producers Organization (APPO), at the 19th APPO Executive Board meeting held in Yaoundé, Cameroon.
Ella emphasized Nigeria’s commitment to the establishment of the Africa Energy Bank (AEB), which aims to address financing gaps in Africa’s energy sector, specifically in the oil and gas industries. “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 actualize this project in Nigeria,” Ella stated, drawing applause from representatives of the 13 APPO member countries present.
Nigeria secured the rights to host the bank’s headquarters in July 2024, beating out competition from Ghana, Algeria, South Africa, and Benin. The AEB is a joint initiative between APPO and AfreximBank, designed to mobilize investments in the continent’s oil and gas sector.
Ella highlighted Nigeria’s accelerated efforts to meet the January launch, including inspections and renovations to prepare the headquarters building in Abuja. He further noted that Nigeria’s Federal Executive Council (FEC) approved the hosting of the bank on June 25, 2024, and that key legal ratifications for the AEB’s establishment are nearly complete.
“Nigeria has made significant progress toward its equity contributions,” Ella said, revealing that the country recently made a $10 million payment to APPO, adding to its initial contribution of $59.12 million. “We intend to make full payment before the bank takes off,” he confirmed, advocating for the integration of AEB into APPO’s budget to support energy sector growth across Africa.
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APPO’s Secretary General, Dr. Omar Farouk Ibrahim, indicated that 50% of the required funds for the AEB launch had already been secured, urging member countries to stay committed to the bank’s timeline. He also outlined the shareholder structure, stating that APPO and AfreximBank would hold priority shares. Hisham Ahmed Selim, an APPO Executive Board member from Egypt, commended Nigeria’s presentation on its preparedness, calling it “encouraging.”
The scheduled launch date coincides with APPO’s 38th anniversary, marking a symbolic milestone for the organization’s efforts to strengthen Africa’s energy sector.
