FG Fixes January for Take-off of $5bn Africa’s Energy Bank, Commits $70m

Emmanuel Addeh in Abuja

The federal government has set January 28, 2025 as the deadline for the commencement of operations of the $5 billion Africa Energy Bank (AEB), which seeks to provide an alternative source of funding for hydrocarbons projects on the continent.

A Nigerian delegation led by the Permanent Secretary, Ministry of Petroleum Resources, and Executive Board Member representing Nigeria at the African Petroleum Producers Organisation (APPO), Nicholas Ella, made the disclosure at the 19th executive board meeting of the organisation in Yaounde, Cameroon.

A statement issued yesterday by the Ministry of Petroleum Resources quoted  Ella as reiterating Nigeria’s commitment to the ideals of APPO and the immediate setting up of the energy bank in Abuja.
Nigeria won the hosting rights for the establishment of the AEB headquarters in Abuja in July 2024, after a fierce competition with Ghana, Algeria, South Africa, and Benin Republic.

The AEB aims to bridge financing gaps in the continent’s oil and gas industry. The Bank is being established by APPO in collaboration with AfreximBank.
“As you are aware, the headquarters building of the AEB was inspected by the technical team on  May 24, 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,”  Ella said at the event which had in attendance representatives of 13 member countries in Yaounde.
The date for the Bank’s take-off coincides with the 38th anniversary of the establishment of APPO, an 18-member country bloc that drives the development of the African energy industry.
Giving further insights on the level of Nigeria’s preparedness for the Bank’s take-off, the permanent secretary reminded the gathering that Nigeria’s Federal Executive Council (FEC) on June 25, 2024, approved the hosting of the bank.

He added that the ratification of both the charter and headquarters agreement were already at an advanced stage.
In its decision, the FEC had approved and endorsed the establishment document of the AEB and instructed the Attorney General and Minister of Justice to commence the process of ratification.

Ella added: “The Attorney General concluded the process on September 9, 2024 and transmitted the AEB establishment documents, which are currently with the  President (Bola Tinubu) for his assent. Once that is done, it will be forwarded to APPO.”
On equity contribution to the AEB, Ella said Nigeria is currently making efforts to complete her own share of the equity contribution to the AEB.

He stressed: “Apart from the earlier payment of $59.12 million, an additional $10 million was paid into APPO Account by 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 AEB 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.”
In reaction to Nigeria’s update on preparations for the Bank’s operationalisation, the Secretary General of APPO, Dr. Farouk Ibrahim, said 50 per cent of the funds needed for the AEB take-off was available.

“I would like to urge APPO member countries to keep up the tempo for the bank’s take-off,”  Ibrahim said.
Besides, he explained that the bank would have three classes of shareholders with APPO and AfreximBank occupying the priority shareholder position.

Responding to Nigeria’s presentation, the APPO executive board member from Egypt, Ahmed Selim, was quoted to have described Nigeria’s explanation concerning preparations for the Bank’s take-off as “encouraging.”