Nigeria has triumphed in the competitive bid to host the headquarters of the $5 billion African Energy Bank (AEB). The decision, announced following an inspection by the African Petroleum Producers Organisation (APPO) and Afrexim Bank, underscores Nigeria’s readiness and strategic position in Africa’s energy sector.
The Nigerian government, led by President Bola Tinubu, committed $100 million from four agencies under the Ministry of Petroleum Resources, exceeding the minimum equity requirement of $83.33 million for Class A shares. This financial commitment was pivotal in securing the hosting rights, which were awarded during an extraordinary meeting of APPO’s Council of Ministers.
Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, expressed gratitude for the support from President Tinubu and the council. “This decision reflects our collective ambition to create African solutions to African energy challenges. The African Energy Bank will provide the necessary financial backbone for energy projects that will drive growth and development across the continent,” Lokpobiri said.
Nigeria was chosen over strong contenders including Ghana, Benin, Algeria, South Africa, and Cote D’Ivoire. This victory highlights Nigeria’s robust energy infrastructure and its vision for Africa’s energy future.
Lokpobiri assured that the establishment of the AEB in Nigeria would mark a transformative era, benefiting not just Nigeria but the entire continent. “We are committed to ensuring that this Bank will not only move Nigeria forward but will also be a beacon of progress for the entire continent. Our goal is to foster sustainable energy solutions that are both innovative and inclusive,” he emphasized.
The AEB is expected to facilitate funding for energy projects, catalyzing economic growth and enhancing energy security. This aligns with the African Union’s Agenda 2063, which aims for a prosperous and self-sustaining Africa.
When operational in Nigeria, the AEB is projected to be the largest single foreign direct investment in over two decades, boosting Nigeria’s GDP, employment, financial architecture, and economic diversification while supporting foreign exchange management strategies. It aims to grow its assets to over $120 billion within seven years, positioning it as Africa’s third-largest bank and the most prominent in Nigeria by shareholders’ funds.
Lokpobiri praised the collaborative efforts of APPO members and their unified vision for a secure energy future, acknowledging President Tinubu’s unwavering support and the Council of Ministers’ trust in Nigeria’s leadership in this pivotal initiative.
