Nigeria has emerged as the winner of the bid to host the headquarters of the African Energy Bank (AEB), a global multilateral institution aimed at financing Africa’s hydrocarbon resources and supporting energy transition and net-zero commitments.
The AEB, established by the African Petroleum Producers Organization (APPO) and Afreximbank, is expected to start operations later this year with an initial $5 billion authorized capital base.
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Minister of State for Petroleum Resources, Heineken Lokpobiri, announced the development on Thursday in Abuja, stating that the decision reflects the country’s leadership and commitment to the energy sector. “This prestigious honor is a testament to our country’s leadership and commitment in the energy sector.
The African Energy Bank will be a cornerstone for financing and advancing energy projects across Africa, promoting innovation, sustainability, and economic growth,” he said.
Nigeria’s selection as the host country is expected to reshape the country’s oil and gas ecosystem and position it as a key player in Africa’s energy landscape.
The hosting of the AEB is expected to bring numerous benefits, including boosting Nigeria’s Gross Domestic Product (GDP), enhancing employment opportunities, and strengthening financial architecture and inclusion, among others.
The establishment of the AEB is expected to facilitate access to funding for energy projects, catalyze economic growth, and enhance energy security.
The bank’s presence will also catalyze development, exploration, and investment initiatives within the oil and gas sector, enhancing market proximity and scaling up production and capacity.
Nigeria’s bid to host the AEB was a competitive process, with the country emerging as the preferred host nation despite competition from Ghana, Benin, Algeria, South Africa, and Cote D’Ivoire.
The Nigerian government had demonstrated its commitment to hosting the bank by investing $100 million in Class A shares, exceeding the minimum equity requirement of $83.33 million.
The establishment of the AEB in Nigeria is a significant milestone in the country’s energy landscape, underscoring its commitment to securing a favorable position in the bid.
The bank’s launch is projected to attract an additional $2 billion in equity from African sovereign wealth funds, national oil companies, and other institutional investors.
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In his statement, Lokpobiri expressed gratitude to President Bola Ahmed Tinubu for his unwavering support and to the Council of Ministers for their trust in Nigeria’s ability to lead this pivotal initiative.
He also highlighted the collaborative spirit of the APPO members and their shared vision for a united, energy-secured Africa.
