Heineken Lokpobiri, minister of state for petroleum resources (oil), says the Africa Energy Bank will provide the necessary capital to tackle energy challenges in the continent.
Lokpobiri spoke on Tuesday at the opening panel of the 2024 African Energy Week in Cape Town, South Africa, themed “Global Energy Security: The Imperative of Africa Energy Development”.
The minister said Africa must drive its energy development, noting that the continent has the capacity to effectively harness and direct resources to address its specific energy needs.
“With APPO leading the charge through the establishment of the Africa Energy Bank (AEB), Africa can now secure the financing needed to tackle its energy challenges effectively,” Lokpobiri said.
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“Africa holds 12% of the world’s oil and 7% of its natural gas reserves. Yet, we’re faced with stark energy poverty with over 600 million Africans lacking electricity, and 900 million lacking clean cooking facilities.
“Energy security is paramount, and we aim to address that first with the initiatives of collaborating for funding, which allow us to chart our path in energy transition, advancing at our own pace rather than being rushed by global pressures.”
He said there are significant investment opportunities in oil, gas, and renewable energy across the upstream, midstream, and downstream sectors in Nigeria.
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The minister urged global investors to invest in Nigeria’s energy sector, describing it as a stable and growing market ready to support diverse energy initiatives that drive sustainable development across Africa.
On November 1, the ministry of petroleum resources said the $5 billion Africa Energy Bank will commence operations on January 28, 2025.
In June, the African Export-Import Bank (Afreximbank), the main funder of the project, signed a memorandum of understanding (MoU) with the Africa Petroleum Producers’ Organisation (APPO)
to establish AEB.
Nigeria won its bid to host the headquarters of the Africa Energy Bank a month later.
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On October 3, APPO said 45 percent of the startup capital has been raised to start the energy bank.
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