Minister says Establishing Africa energy bank’ll foster energy security across Africa 

The Federal Government says establishing the Africa Energy Bank (AEB) represents a bold and strategic move towards ensuring energy security, fostering economic growth, and promoting sustainable development across Africa.

Sen. Heineken Lokpobiri,  Minister of State Petroleum Resources (Oil), made this known at a dinner with Heads of Mission of African Petroleum Producers’ Organisation (APPO) Member Countries y in Abuja.

The meeting with the envoys was a step further in the Federal Government’s bid for Africa’s first energy bank, to convince them on why the facility should be located in Nigeria, the Africa’s biggest oil producer.

The idea of the bank was floated to ensure long-term energy efficiency and security for Africa, following the hesitation of the West to continue to invest in fossil fuels on the continent.

Lokpobiri explained that Nigeria’s bid to host the bank’s headquarters was a testament to its unwavering commitment to these goals, adding that over the past months, the Ministry of Petroleum Resources had worked tirelessly to prepare for the moment

“We have achieved significant milestones, including a comprehensive assessment by the APPO Afrexim-Bank inspection team. Their positive evaluation underscores Nigeria’s readiness and capability to host the AEB.

“However, the journey does not end here. To secure the hosting rights, we need the collective support of all APPO Member Countries. Our competitors have intensified their efforts by appointing Special Envoys to lobby for their bids.

“In response, we are appealing to each of you to recognise the advantages of situating the AEB headquarters in Nigeria. Nigeria offers a strategic geographical location, robust infrastructure and a dynamic energy sector,” he said.

According to the minister who described the dinner as not just a gathering, but a call to action, Nigeria is committed to fostering a collaborative environment that will enable the AEB to thrive and achieve its mandate effectively, explaining.

Also speaking, the Permanent Secretary, Ministry of Petroleum Resources, Amb. Nicholas Ella, said that Nigeria’s strategic location at the crossroads of West Africa rendered Abuja an unrivaled nexus of connectivity and accessibility.

Ella said that with Abuja’s extensive network of transportation infrastructure and logistical capabilities, it offered a strategic gateway to the entire African continent, providing the bank with unparalleled access to key energy markets and decision-makers across Africa.

He said that Nigeria’s proactive approach to regulatory reform had also positioned the country as a paragon of stability and transparency within the global energy landscape.

“Nigeria’s rich endowment of oil, gas, and renewable energy resources present an unparalleled opportunity for the bank to harness the continent’s vast energy potential and drive sustainable development,” he said.

He said that Nigeria’s burgeoning renewable energy sector, characterised by abundant solar and wind resources, held an immense promise for powering Africa’s future.

According to him, with huge oil and gas reserves, Nigeria seeks to leverage its energy wealth to catalyse innovation, investment, and economic diversification across the continent, ensuring energy security and resilience for generations to come.

In his remarks, the Permanent Secretary, Ministry of Foreign Affairs, Adamu Lamuwa, represented by Ben Okorie, described the event as a matter of extraordinary significance, explaining that the gravity of the decision cannot be overstated.

“It holds the power to shape the trajectory of energy cooperation and development across Africa for generations to come,” he said.

Lamuwa expressed confidence at its collective ability to realise a future of prosperity and progress for all Africans, as Africa embarks on the transformative journey together, guided by the principles of cooperation, inclusivity, and sustainability.

Nigeria holds Africa’s largest natural gas reserves and ranks ninth globally, boasting proven reserves of 200 trillion cubic feet and gas production capacity standing at 8.5 billion cubic feet per day.

Hosting the bank in Nigeria ensures proximity to key energy technocrats and experts, which is essential for formulating and implementing effective solutions to Africa’s energy challenges.

The bank’s share capital is expected to be five billion dollars to be subscribed over three years with an initial capital of1.5 billion dollars reserved for APPO member countries.

Afrexim Bank has been supporting APPO to establish the Bank and has approved an investment of 1.75 billion dollars for the bank.

The AEB will finance hydrocarbon, oil and gas infrastructure across the energy streams, with target shareholders as African governments, national oil companies, sovereign wealth funds, private and public sector institutional investors and international partners like the Middle East and Asia. (NAN)