Afrexim Bank, Appo’s Technical Team Completes Inspection of Nigeria’s Bid to Host AEB

As part of the validation process for Nigeria’s bid to host the headquarters of the African Energy Bank (AEB), a technical inspection team from the African Petroleum Producers Organization (APPO) in Brazzaville and Afreximbank in Cairo—joint promoters of the AEB—has completed its inspection mission. This mission was conducted to assess and confirm Nigeria’s readiness to host the AEB headquarters, which is scheduled to be established in July 2024.

Following the first bidding round in early 2024, Nigeria, Ghana, Benin, and Algeria were pre-qualified to proceed to the final round of bidding. These countries will compete for the right to host the SupraNational Multilateral $5 billion Africa Energy Bank, which will finance Africa’s hydrocarbon deposits of oil, gas and condensates and support energy transition and net zero 2060 commitments.

According to a statement signed by the Permanent Secretary, Ministry of Petroleum Resources, Ambassador Nicholas Agbo Ella, the ministry sought and obtained expert opinions from the Federal Ministry of Justice and consultants in January 2024.

“They reviewed and approved the Bank’s proposed Charter, Establishment Agreement, ‘The Treaty,’ and Headquarters Host Agreement. This approval provided the impetus to proceed, and the Federal Executive Council and National Assembly are currently finalizing the ratification process. This will ensure that the AEB receives the necessary privileges and immunities to operate in line with its global vision,” the statement reads.

To demonstrate the country’s commitment, Nigeria has identified a prestigious building in Abuja for the temporary headquarters and opened a secured data room for the technical team’s review.

The application form for land for the permanent headquarters in the Central Business District of Abuja has been submitted for approval.

The statement also disclosed that President Bola Tinubu has approved a $100 million investment from four agencies of the Ministry of Petroleum Resources, exceeding the minimum equity requirement of $83.33 million for class A shares. This decision positions Nigeria favourably to win the bid, potentially reshaping the country’s oil and gas ecosystem.

The Ministry of Petroleum Resources also confirms that Nigeria is working diligently with Nigerian National Petroleum Company Ltd. (NNPCL), and the Nigerian Content Development Monitoring Board (NCDMB), to meet all eligibility criteria.

Thus, the $5 billion Africa Energy Bank, when headquartered in Nigeria, shall be the largest single foreign direct investment inflow into Nigeria in over two decades with numerous benefits including ranking as the third largest Bank in Africa and shall be the most prominent bank in Nigeria in terms of shareholders’ funds. It will significantly boost Nigeria’s GDP, employment, financial A
architecture and inclusion, and propel our economic diversification while supporting foreign exchange management strategies among others.