Nigeria has emerged victorious in a competitive bidding process to host the SupraNational Multilateral $5 billion Africa Energy Bank. This institution aims to fund Africa’s hydrocarbon resources, including oil, gas, and condensates while supporting energy transition efforts and achieving net zero goals by 2060.
During a recent briefing in Abuja, the announcement came from Heineken Lokpobiri, Minister of State for Petroleum (Oil). The decision follows a thorough evaluation by the African Petroleum Producers Organisation (APPO) and AfreximBank, joint African Energy Bank (AEB) promoters.
Initially, Nigeria, Ghana, Benin, and Algeria advanced to the final round after the first bidding stage in 2024. Minister Lokpobiri highlighted Nigeria’s critical need for funding amidst the challenges African oil-producing nations face.
“This approval by the Council of Ministers of APPO marks a significant milestone,” Lokpobiri remarked. “Securing the headquarters of the Africa Energy Bank in Nigeria is a major achievement for our administration.”
Nigeria’s Ministry of Petroleum Resources engaged legal and consulting experts in January 2024 to review and approve essential documents to ensure readiness. These include the bank’s Charter, Establishment Agreement, and Headquarters Host Agreement, currently undergoing ratification by the Federal Executive Council and National Assembly.
President Bola Ahmed Tinubu’s approval of a $100 million investment from petroleum sector agencies underscores Nigeria’s commitment. This investment surpasses the required equity for class A shares, strengthening Nigeria’s bid and potentially transforming its oil and gas sector.
Establishing the $5 billion AEB in Nigeria promises to be the largest foreign direct investment in the country in decades. With projections to grow assets significantly over the next seven years, the bank aims to attract additional equity from African Sovereign wealth funds and national oil companies, aligning with its mission to support Nigeria’s 2030 development goals.
AfreximBank has committed $1.250 billion as a major investor, signalling strong support alongside APPO members.
