Nigeria Secures $5 Billion Africa Energy Bank Hosting Rights

Nigeria has successfully secured the bid to host the $5 billion Africa Energy Bank.

The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, disclosed this while speaking to journalists after a virtual meeting of the council of ministers of the African Petroleum Producers Organisation (APPO) on Thursday.

The government said Nigeria emerged as the preferred host nation amidst stiff competition from Ghana, Benin, Algeria, South Africa, and Cote d’Ivoire. The selection, it said, highlights Nigeria’s robust energy sector and its strategic vision for the continent’s energy future. The bank, according to the government, is expected to facilitate access to funding for energy projects, thereby catalysing economic growth and enhancing energy security.

Mr Lokpobiri emphasised that this initiative aligns with the broader objectives of the African Union’s Agenda 2063, aiming for a prosperous and self-sustaining Africa.

“I am delighted to share that Nigeria has been selected to host the headquarters of the African Energy Bank. This prestigious honour is a testament to our country’s leadership and commitment in the energy sector.

“As the Minister for Petroleum Resources (Oil), I am incredibly proud of this achievement. The African Energy Bank will be a cornerstone for financing and advancing energy projects across Africa, promoting innovation, sustainability, and economic growth.

“This is a remarkable victory for Nigeria and the entire African continent. It symbolises our collective efforts to harness and develop our rich energy resources for a brighter, more sustainable future,” Mr Lokpobiri said. He assured Nigerians and Africans at large that the establishment of the AEB would mark a transformative era in meeting energy needs.

“We are committed to ensuring that this bank will not only move Nigeria forward but will also be a beacon of progress for the entire continent. Our goal is to foster sustainable energy solutions that are both innovative and inclusive,” he added.

He highlighted the collaborative spirit of the APPO members and their shared vision for a united, energy-secured Africa.

Mr Lokpobiri reiterated his gratitude to Mr Tinubu for his unwavering support and to the council of ministers for their trust in Nigeria’s ability to lead this pivotal initiative.

“Thank you to everyone who made this possible. Together, we are shaping the future of energy in Africa, starting right here in Nigeria,” he said.

Desire to host
Last month, the Nigerian government expressed readiness to host the bank.

Speaking at the bidding exercise which took place at a dinner for the heads of mission of the envoys of members of APPO in Abuja at the time, President Bola Tinubu said hosting the bank in Nigeria will ensure proximity to opportunities essential for formulating and implementing effective solutions to Africa’s energy challenges.

Mr Tinubu, represented by Mr Lokpobiri, noted that the bank’s share capital, put at $5 billion, is expected to be subscribed over three years with an initial capital of $1.5 billion reserved for APPO member countries.

AfreximBank has been supporting APPO to establish the bank and has approved an investment of $1.75 billion for the bank.