Africa Energy Bank to commence operations January 2025, says petroleum ministry

The ministry of petroleum resources says the $5 billion Africa Energy Bank (AEB) will commence operations on January 28, 2025.

Nicholas Ella, permanent secretary, ministry of petroleum resources, spoke at the African Petroleum Producers Organisation (APPO) 19th executive board meeting in Yaounde, Cameroon.

In June, the African Export-Import Bank (Afreximbank), the main funder of the project, signed a memorandum of understanding (MoU) with APPO to establish the bank.

A month later, the federal government said Nigeria had won its bid to host the headquarters of the Africa Energy Bank.

On October 3, APPO said 45 percent of the startup capital had been raised to start the energy bank in 2025.

According to a statement issued on Friday by the ministry of petroleum resources, Ella reiterated Nigeria’s commitment to the ideals of APPO and the immediate establishment of the energy bank which aims to bridge financing gaps in the continent’s oil and gas industry.

“I am pleased to address the executive board (EB) meeting on this very important subject matter – the take-off of the Africa Energy Bank Headquarters in Abuja, Nigeria,” the permanent secretary said.

“As you are no doubt aware, the headquarters building (of the Africa Energy Bank) was inspected by the Technical Team on 24th May 2024, and renovation works for its completion are 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 added that the “ratification of both the charter and headquarters agreement are in an advanced stage”.

“In its decision, the FEC also approved and endorsed the Establishment Document of the AEB and instructed the Attorney General and Minister of Justice to commence with the process of ratification,” he added. 

“The attorney general concluded the process on 9th September 2024 and transmitted the AEB establishment documents, which are currently with His Excellency, the president for his assent. Once that is done, it will be forwarded to APPO.”

‘NIGERIA MAKING EFFORTS TO COMPLETE EQUITY’

Ella also said Nigeria is currently making efforts to complete the country’s share of the equity contribution to the AEB.

“Apart from the earlier payment of $59,120,000:00, an additional $10 million was paid into the APPO Account by the FGN (Nigeria) last week. We intend to make full payment before the bank takes off,” the ambassador said.

“Nigeria wishes to advocate for the establishment and funding of the Africa Energy Bank 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 mobilizing investments in oil and gas projects, which are vital for Africa’s economic growth and development.”

In his remarks, Farouk Ibrahim, the secretary general of APPO said 50 percent of the funds needed for the AEB take-off was available, adding that the bank would have three classes of shareholders with APPO and Afreximbank occupying the priority shareholder position.

“I would like to urge APPO member countries to keep up the tempo for the Bank’s take-off,” Ibrahim said.

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.