Nigeria’s Bid to Host Africa Energy Bank Headquarters Gains Momentum
Nigeria has emerged as a frontrunner in the race to host the headquarters of the Africa Energy Bank (AEB), as confirmed by a recent validation from a technical inspection team representing the Africa Petroleum Producers’ Organisation (APPO) and the African Export-Import Bank (Afreximbank).
Following a rigorous selection process, Nigeria, alongside Ghana, Benin, and Algeria, has advanced to the final round of bidding. These countries are vying for the privilege to host the multilateral $5 billion bank, aimed at financing Africa’s hydrocarbon deposits, supporting energy transition efforts, and aligning with net-zero 2060 commitments.
Ambassador Nicholas Agbo Ella, the Permanent Secretary of Nigeria’s Ministry of Petroleum Resources, disclosed that Nigeria’s meticulous preparations have positioned the country as a strong contender for hosting the AEB. He highlighted key milestones achieved, including securing approvals for the bank’s Charter, Establishment Agreement, and Headquarters Host Agreement, with ongoing ratification processes at the Federal Executive Council and National Assembly levels.
To demonstrate Nigeria’s commitment, President Bola Tinubu has approved a substantial $100 million investment from four agencies of the Ministry of Petroleum Resources, surpassing the minimum equity requirement for class A shares. This significant investment not only enhances Nigeria’s bid but also promises to reshape the nation’s oil and gas landscape.
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Ella outlined the transformative impact of hosting the AEB, citing benefits such as bolstering Nigeria’s GDP, employment, financial architecture, and economic diversification efforts. Additionally, the AEB’s presence in Nigeria is expected to catalyze exploration and investment initiatives, strengthen financial services infrastructure, and attract sustainable foreign direct investment (FDI) to support Nigeria’s vision 2030 ambitions.
Upon commencement, the AEB aims to attract additional equity investments totaling $2 billion from African sovereign wealth funds, national oil companies, and institutional investors aligned with its mission. Afreximbank has committed a substantial $1.250 billion investment as a major investor in class A shares, further solidifying the bank’s foundation.
With the establishment documents signed by the founding institutions, the momentum builds for the AEB’s imminent launch, pending ratification by at least two member countries. Nigeria’s bid to host the AEB headquarters not only symbolizes a significant milestone in Africa’s energy landscape but also heralds a new era of sustainable development and economic growth for the continent.
