The Africa Energy Bank (AEB), established to finance oil and gas projects and support Africa’s energy transition, is set to begin operations in the first quarter of 2025 with a target asset base of $120 billion.
This was disclosed by Nigeria’s Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, on Tuesday in Lagos.
“The building is ready, and we are only putting finishing touches to it. By the end of this quarter, this bank will take off,” Lokpobiri said.
The bank is a joint initiative between the African Export-Import Bank (Afreximbank) and the African Petroleum Producers Organization (APPO).
The financial institution aims to address the financing gap in Africa’s energy sector, especially as global lenders shift focus away from fossil fuel investments.
Lokpobiri noted that while the global transition to renewable energy is gaining momentum, Africa must adopt a balanced approach that ensures economic stability.
“The global transition to cleaner energy is not a threat; it is an opportunity,” he said. “But sustainability is not just about the environment; it is about our people. Host communities must benefit, and our children must inherit an industry that prioritises education, healthcare, and infrastructure.”
He further stressed the need for regional collaboration and innovation to make African nations more competitive in the global energy market.
Nigeria, Africa’s largest oil producer, won the bid to host the Africa Energy Bank over three other African nations. Lokpobiri stated that this marks a shift toward financial autonomy, reducing the continent’s dependence on foreign capital.
“The African Energy Bank allows us to move away from dependency on external policies that do not align with Africa’s development priorities,” he said.
He also suggested that increasing investments in human capital and hydrocarbon resources would help African countries diversify their economies while gradually integrating renewables for long-term energy security.
As part of its goals, the Africa Energy Bank is expected to provide funding solutions tailored to Africa’s energy needs, ensuring that oil and gas projects continue to thrive despite global financing challenges.
