By Milcah Tanimu
The African Petroleum Producers’ Organisation (APPO) is accelerating efforts to establish the Africa Energy Bank, with the institution set to be headquartered in Abuja, Nigeria. The initiative aims to provide vital funding for energy projects, driving economic growth and bolstering energy security across the continent.
Nigeria recently won the bid to host the $5 billion bank, which will focus on facilitating access to financial resources for energy projects. This significant development was discussed during the 18th ordinary meeting of the APPO executive board held in Brazzaville on Tuesday.
Umar Farouk Ibrahim, APPO Secretary-General, called on member countries to contribute their subscription fees of $83 million to ensure the bank’s launch by September 2024. “We are aligned with the resolutions of the APPO council of ministers from last week. We will double our efforts to gather the necessary funds to initiate the Africa Energy Bank,” Ibrahim stated.
He also mentioned ongoing discussions with Nigeria regarding the preparation of the bank’s headquarters and the host country agreement. “We already have one member country that has signed the establishment agreement; we need one more signature to proceed,” he added.
Nichola Ella, Permanent Secretary of the Ministry of Petroleum Resources, reaffirmed Nigeria’s commitment to the APPO’s objectives to enhance energy security in Africa. “The Nigerian government is determined to collaborate with other member countries to address the financial needs of Africa’s energy sector through funding oil and gas projects,” Ella said.
Ella highlighted the collective dedication of the 18 APPO member countries gathered in Brazzaville to promote unity, cooperation, and sustainable development within the African energy sector. “Together, we will create an institution that addresses the financial needs of our energy projects and champions sustainable development, environmental stewardship, and economic inclusivity across Africa,” he stated.
Former Nigerian Minister of State Petroleum Resources, Ibe Kachikwu, proposed a ten-year plan to foster investment in the energy industry. He emphasized the importance of growing the energy bank’s capital base before making significant investments.
The Africa Energy Bank represents a strategic effort by African oil-producing countries to harness their resources and capabilities, ensuring a more secure and prosperous energy future for the continent.