Nigeria is gearing to host the $5 billion Africa Energy Bank following the inspection of its proposed Abuja headquarters by the country’s Minister of State for Petroleum Resources (Oil) Heineken Lokpobiri.
The minister inspected the new building on Friday in the company of APPO Secretary General Omar Farouk Ibrahim and Afreximbank Vice President Haytham El Maayergi.
He praised President Bola Tinubu for backing the project that will soon deliver value to Africa, stressing that Nigeria has met all its obligations as the host country.
“We came to inspect the furnished headquarters of the African Energy Bank and we are happy to disclose to the world and Africans that Nigerians have delivered on all their obligations meant for us to fulfil as the host country,” Lokpobiri said.
The African Energy Bank is a new continental lender jointly promoted by the African Petroleum Producers’ Organisation (APPO) and the African Export-Import Bank (Afreximbank) to close funding gaps and drive large scale investments across Africa.
Africa faces rising energy demand, yet many nations struggle with inadequate supply.
The bank will help fund upstream exploration, refinery upgrades, and gas commercialization projects, reducing dependence on imports and stabilising domestic supply
African Energy Bank faces delays in taking off
The African Energy Bank (AEB) has faced delays in taking off due to slow decision-making among its promoters, funding rifts, and Nigeria’s initial challenges in meeting host-country obligations for its Abuja headquarters.
Although the bank is now closer to launch, these setbacks pushed back its original timeline.
Nigeria won the bid to host the AEB headquarters in Abuja in July 2024, beating Ghana, Algeria, South Africa, and Benin.
However, the country initially struggled to provide the necessary infrastructure, facilities, and personnel on time, which slowed preparations for the bank’s operational launch.
Afreximbank, which alone has pledged to transfer over $14 billion in exposure to the new bank, had initially warned that APPO’s delay in transferring equity subscription funds could indefinitely stall the project, raising concerns about financial readiness.
These conflicting interests among stakeholders and slow decision-making processes created uncertainty about governance and operational structures, contributing to the postponement of the bank’s official launch, originally slated for January 2025.
Nigeria fulfils host country commitments
On its part, Nigeria has been deeply committed to the establishment of the African Energy Bank (AEB) from the very beginning.
It strongly backed the idea of a continent-led energy financing institution, recognizing the need to fill the gap left by global lenders retreating from fossil fuel investments.
Nigeria has contributed up to $100 million in equity funding towards the project, exceeding the minimum requirement of $83 million for APPO member states, demonstrating its commitment to the project.
Aside from the financial commitment, Nigeria also won the hosting rights for the AEB headquarters last year, ensuring that the bank could move toward operational launch without financial shortfalls.
“The headquarters building is ready in the best location. And so we are ready for the bank to take off. We are waiting for APPO and the Afreximbank as the drivers of this process to facilitate the take-off of the bank,” Lokpobiri said.
