African Energy Bank to begin operations as Nigeria completes $5 billion HQ
Nigerian Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, announced that the headquarters of the $5 billion African Energy Bank (AEB) in Abuja, Nigeria, is complete and ready for operations. The AEB, an initiative of the African Petroleum Producers’ Organisation (APPO) and the African Export-Import Bank (Afreximbank), is set to start operations soon, pending final administrative protocols.
Operational details
- Purpose: The AEB was established to finance oil, gas, and clean energy projects across Africa and close funding gaps in the continent’s energy sector.
- Funding: The bank has an initial capitalization of $5 billion, with contributions from member states, APPO, Afreximbank, and other institutional investors.
- Timeline: While an earlier target was set for January 2025, the Minister stated that the headquarters is now ready for operations and the launch depends on final steps from APPO and Afreximbank.
- Host country commitment: Lokpobiri confirmed that Nigeria has fulfilled all its obligations as the host country for the bank’s headquarters.
- Strategic importance: The bank aims to provide long-term, Africa-led financing for energy development, especially as global lenders are restricting support for fossil fuel projects. It is also expected to help African countries fund infrastructure, exploration, and clean energy projects.
