Energy Policy & Regulation

The Africa Energy Bank (AEB), a significant initiative aimed at addressing the financial challenges faced by Africa's oil and gas sector, is set to commence operations on January 28, 2025. This announcement was made by Nicholas Ella, the permanent secretary of the Ministry of Petroleum Resources, during the African Petroleum Producers Organisation (APPO) 19th executive board meeting held in Yaoundé, Cameroon. The establishment of the bank, primarily funded by the African Export-Import Bank (Afreximbank), was formalized through a memorandum of understanding (MoU) signed in June 2023. Following Nigeria’s successful bid to host the bank's headquarters, progress has been swift, with APPO reporting that 45 percent of the required startup capital has already been secured.

Ella emphasized Nigeria's dedication to the AEB's mission and the urgency of its establishment. He highlighted ongoing renovations for the bank’s headquarters in Abuja, which were inspected by a technical team in May 2024. With the support of the Nigerian government, including President and National Assembly backing, efforts are in place to ensure the timely completion of the headquarters building. Ella assured attendees that the Ministry of Petroleum Resources is committed to delivering a fully furnished facility in advance of the bank’s operational launch.

In addition to the logistical preparations, Ella noted that the ratification of the bank's charter and headquarters agreement is progressing well. The Nigerian government has already completed its equity contribution process, with over $69 million allocated to the project. This financial commitment is critical as the AEB aims to mobilize investments in the energy sector, providing essential support for oil and gas projects that are vital for Africa's economic development. Ella's remarks underscore Nigeria's strategic vision for the energy sector, advocating for the AEB's inclusion in APPO’s broader budgetary plans.

Farouk Ibrahim, the secretary-general of APPO, added that funding for the AEB's launch is on track, with 50 percent of the necessary capital secured. The bank will have a structured shareholder model, prioritizing both APPO and Afreximbank. As the launch date approaches, Ibrahim urged member countries to maintain their commitment to the bank's establishment. Coinciding with APPO’s 38th anniversary, the AEB promises to play a pivotal role in enhancing Africa's energy landscape and supporting the continent's growth through strategic financial solutions.