The Nigerian government has set January 28, 2025 as the deadline for the operationalisation of the $5 billion Africa Energy Bank in Abuja.
The Permanent Secretary, Ministry of Petroleum Resources and Executive Board Member representing Nigeria at the African Petroleum Producers Organization (APPO), Amb. Nicholas Agbo Ella, made the disclosure on Wednesday, October 30, 2024 at the 19th Executive Board Meeting of the organisation in Yaounde, Republic of Cameroon.
Assistant Director of Information in the ministry, Chris Ugwuegbulam, said in a press release that while reiterating Nigeria’s commitment to the ideals of APPO and the immediate setting up of the energy bank in Abuja, Ella said: “Nigeria won the hosting right for the establishment of the Africa Energy Bank (AEB) Headquarters in July 2024, after it competed with Ghana, Algeria, South Africa, and Benin Republic.”
He further said that the AEB 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.
“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 is 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, His Excellency Bola Ahmed Tinubu, GCFR, and our National Assembly to actualise this project in Nigeria,” Amb Ella stated, drawing applause from representatives of 13 member countries who were at the meeting in Yaounde.
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.
The AEB is being established by APPO in collaboration with the Afriexim Bank.
Giving further insights on the level of Nigeria’s preparedness for the bank’s take off, the Permanent Secretary reminded the gathering that Nigeria’s Federal Executive Council on June 25, 2024, “approved the hosting of the bank.”
He added: “The ratification of both the Charter and Headquarters Agreement are in 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.
“The Attorney General concluded the process on 9th September 2024 and transmitted the AEB Establishment Documents are currently with the His Excellency, the President for his assent. Once that is done, it will be forwarded to APPO.”
On equity contribution to the AEB, Amb. Ella said Nigeria is currently making efforts to complete her own 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 APPO Account by the FGN (Nigeria) last week. We intend to make full payment before the bank takes off.
“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 reaction to Nigeria’s update on preparations for the bank’s operationalisation, the Secretary General of APPO, Dr. Omar Farouk Ibrahim, said 50 per cent of the funds needed for the AEB take-off was available.
He said: “I would like to urge APPO member countries to keep up the tempo for the bank’s take-off.”
He explained that the bank would have three classes of shareholders with APPO and Afrexim occupying the priority shareholder position.
Responding to Nigeria’s presentation, the APPO Executive Board member from Egypt, Hisham Ahmed Selim, described Nigeria’s explanation concerning preparations for Bank’s take-off as “encouraging.”
