The Africa Energy Bank failed to begin operations in March as promised by the Minister of State for Petroleum Resources, Heineken Lokpobiri.
In February, Lokpobiri said the building hosting the bank in Abuja, the Federal Capital Territory, was receiving finishing touches.
“We are very proud that as part of our commitment to host the Africa Energy Bank, the building is ready. We are putting the finishing touches to it. It’s a beautiful building, the best you can find in Africa. And our own projections are that this bank will take off by this (first) quarter. This is February,” he said.
However, the bank has yet to open for business as the year hit the second quarter yesterday. Meanwhile, Angola and Ghana have joined Nigeria in contributing their capital shares to the Africa Energy Bank, reinforcing its role in advancing energy finance.
In a significant development for Africa’s energy sector, Nigeria, Angola and Ghana fulfilled their capital commitments toward establishing the bank. The milestone, it was learnt, represents 44 per cent of the minimum required funding from African Petroleum Producers Organisation members to initiate the bank’s operations. Secretary-General of APPO, Omar Farouk, announced this progress during the Congo Energy & Investment Forum recently.
The AEB aims to finance oil and gas projects across the continent, addressing funding challenges posed by traditional Western financial institutions’ reluctance to support fossil fuel initiatives due to environmental concerns. APPO has requested each of its 18 member states to contribute $83m, targeting a total initial capitalisation of $5bn.
Beyond Nigeria, Angola and Ghana, five additional member states – Algeria, Benin, the Republic of Congo, Equatorial Guinea and Ivory Coast – have pledged to make their payments, aligning with the bank’s goal to commence operations in the first half of 2025, Farouk said in a statement.
Nigeria remains sub-Saharan Africa’s largest oil producer, offering significant opportunities in the oil and gas sector, including a 2025 bid round. “The establishment of the AEB is a strategic response to Africa’s need for dedicated financial institutions that understand the continent’s unique energy landscape.
“By providing tailored financing solutions, the bank is poised to accelerate energy project development, enhance energy security and drive economic growth. As more countries contribute their capital shares, the bank is expected to play a pivotal role in unlocking investment, bridging financing gaps and ensuring sustainable energy expansion across Africa.“
With Nigeria, Angola and Ghana contributing their capital shares, the AEB is gaining momentum as a key financial institution for the continent’s energy future. African Energy Week 2025: Invest in African Energies – taking place from September 29 to October 3 in Cape Town – will serve as a vital platform to advance discussions on the AEB’s role in mobilising investment and bridging financing gaps,” the statement read.