Last week’s handover of the $5billion African Energy Bank Headquarters in Abuja, represents a significant milestone and historic match to energy security and sustainability in Africa.
Besides, the June date for the commencement of the ambitious project marks the changing phase of the African oil and gas industry as well as a bold statement to confront the continent’s energy future head-on.
For the African Energy Bank, the handover ceremony gave hope of impending termination to the long haul and series of postponements which had punctuated its earlier take off.
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The African Energy Bank is a joint initiative of African Petroleum Producers’ Organization (APPO) member states and the African Export-Import Bank (Afreximbank) with headquarters in Abuja.
It is a $5 billion supranational bank focused on financing Africa’s oil, gas, and energy transition projects. The funder’s target is to reach $120 billion in five years.
Besides, its core mandate is to mobilize domestic and regional capital for energy infrastructure, reduce Africa’s reliance on external financing, and align energy investments with the continent’s long-term development and industrialization goals.
Nigeria’s Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, who performed the hand-over ceremony, stated that the country has met every obligation as host.
He informed us that the headquarters is ready, strategically located, and fully equipped and we are prepared for immediate take-off.
The President of the African Petroleum Producers’ Organization (APPO) and Côte d’Ivoire’s Minister of Mines, Petroleum and Energy, Mamadou Colibaly, also disclosed at the ceremony the institution will begin operations by June 2026.
“We are committed to launching this Bank no later than June. I sincerely thank our partners for providing the headquarters and office that make this take-off possible. The African Energy Bank represents Africa’s commitment to finance, develop, and secure its own energy future by Africans, for Africans,” Mamadou Colibaly said.
The Nigerian Content Development and Monitoring Board (NCDMB) has already reaffirmed its support to the African Petroleum Producers Organisation (APPO) and its newly established financial institution – the Africa Energy Bank (AEB).
The Executive Secretary of NCDMB, Engr. Felix Omatsola Ogbe made the pledge when the new Secretary General of APPO, H.E. Farid Ghezali visited the Board’s Abuja liaison office, in company with senior officials of APPO, Mr. Bakary Traore and Mr. Tchananti Sahguir.
Former President of Petroleum and Natural Gas Senior Staff Association of Nigeria, Dr.Louis Ogbeifun, told Daily Trust that the world is shifting capital from fossil fuel energy supplies to renewables.
Nigeria needs about $1.9 trillion to reach net-zero emissions by 2060, he said, adding that it is expected that the African Energy Bank at maturity could finance critical gas-based transition projects and help establish the supportive structures needed for an effective transition.
He said: “Raising $120 billion is no mean feat. Some of its challenges stemmed from a funding rift between the APPO and Afreximbank. Despite the optimism generated by the bank’s establishment, its launch has had hiccups, with multiple postponements.
“Other challenges include distrust among funding partners who believe that Nigeria, as a host, may use its influence to unfairly dominate funding allocations and access.
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“My take is that the African Energy Bank is necessary, timely, and potentially transformational. If it succeeds, it will serve as Africa’s energy bank, much like the IMF, a dream that the advanced nations may want to thwart.”
Dr. Abiodun Ogunjobi, former President of Nigerian Association of Petroleum Explorationists (NAPE), commended the selection of Nigeria to host the $5bn African Energy Bank as a historic milestone.
The bank, he stated, would be a “game-changer for providing specialized financing, risk management, and advisory services for energy projects.”
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