Oramah: Nigeria received 60% of Afreximbank’s $30bn funding in energy sector

The African Export-Import Bank (Afreximbank) says Nigeria is among the largest beneficiaries of funding in Africa’s energy sector.

Benedict Oramah, president of Afreximbank, spoke on Wednesday at the ongoing 7th Nigeria International Energy Summit (NIES 2024) in Abuja.

He said Nigeria accounted for about 60 percent of its $30 billion funding in the continent’s energy sector.

Oramah revealed this while speaking on the topic ‘Sustainable Strategies for Energy Leadership: Navigating Security, Transition and Finance in a Changing World’.

The president said Afreximbank has been able to make modest contributions in the oil and gas sector because the bank was predominantly African in ownership and control. 

“The support provided to the sector by Afreximbank is in excess of US$30 billion. Nigeria has been one of the largest beneficiaries accounting for almost 60 percent of the total funding of the sector,” he said.

Oramah, represented by Haytham Eimaayergi, executive vice president, Global Trade Bank (GTBA), said the continent lacked extensive traditional energy infrastructure.

This, he said, presented an opportunity for leapfrogging in a more efficient way to renewable technology.

With many international banks withdrawing funding out of the oil and gas sector, Oramah said the investment in the industry had become limited with the corresponding impact on exploration and production.

“Our aspiration in the area of energy security and energy transition will remain aspiration unless we have access to adequate funding resources that we control,” he said.

“Afreximbank has intervened in a big way, quickly becoming the largest financier of oil and gas deals in the continent.”

Oramah added that Afreximbank and Africa Petroleum Producer Organisation (APPO) are in the final stages of setting up the African Energy Bank.

He said the Africa Energy Bank, which is being set up under a multilateral financial institution agreement, will focus on providing funding for the sector in the continent.

“Afreximbank is committed to helping manage and operate Africa energy bank to ensure that it has the best possible chances of success,” Oramah said.

“The strategic goal of the Africa Energy Bank is to play a leadership role in shaping the energy landscape in Africa, through strategic partnerships with proven African and international financial institutions and investors.

“It will also provide sustainable financing in the area of the oil and gas sector.”

Oramah, however, appealed for support from member states to achieve the level of capitalisation that would be adequate to support the energy sector.

In November 2023, Afreximbank said it would inaugurate the African Energy Bank in June 2024 to mitigate the crisis in the continent’s energy sector.

Speaking earlier, Omar Ibrahim, secretary-general of the African Petroleum Producers Organisation (APPO), said the decision on which country the proposed African Energy Bank will be sited, is to be taken by the end of the first quarter of 2024.

Ibrahim said seven countries including Nigeria, Algeria, Egypt, Ghana, South Africa, Benin Republic, and Cote d’Ivoire are jostling for it.