The African Energy Bank is expected to begin operations in September in Abuja, according to the African Petroleum Producers’ Organisation (APPO).
Argus Media reported that APPO Secretary General Farid Ghezali noted that there have been several delays. He said the new target is to make the bank operational in September 2026, based on unavoidable administrative timelines.
The launch had first been moved from April to June, before members were again aligned around a third-quarter timeline. At a recent meeting, the Nigerian government restated its commitment to the bank starting operations formally.
APPO and the African Export-Import Bank set up the African Energy Bank to meet Africa’s funding needs in oil, gas, and wider energy projects and to reduce the impact of tightening global finance for hydrocarbons in the region.
Nigeria’s Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, and the Executive Secretary of the Nigerian Content Development and Monitoring Board, Felix Ogbe, joined other Nigerian officials at the 46th extraordinary ministerial meeting held virtually.
The Nigerian delegation said the country remains prepared and committed to the start of the bank’s operations. Ogbe also serves on the APPO Executive Board as Nigeria’s representative.
Reports indicate that the African Energy Bank will act as a leading platform to mobilize private capital for energy projects across Africa and provide more affordable financing options for development.
Earlier plans set the bank’s launch for before the end of April. At that stage, stakeholders expected shareholder meetings, leadership appointments, staff recruitment, and other setup processes to be completed.
Funding challenges have slowed progress, even though the Nigerian government confirmed that the headquarters was ready.
Ghezali urged APPO members to fulfil their funding commitments toward the $500 million start-up capital before the end of June.
Argus Media sources said 91 percent of the capital has already been secured, while the Nigerian National Petroleum Company Limited and the Nigerian Content Development and Monitoring Board are expected to provide the remaining share.
Ghezali said the AEB plans to address Africa’s imbalance, where the continent imports over 60 percent of its petroleum products and produces only about 12 percent of global upstream liquids, despite holding large reserves.
The Nigerian Content Development and Monitoring Board said the bank will pursue this goal by raising private sector funding for energy projects across Africa.
APPO leadership said the bank aims to finance 20 to 30 LNG, pipeline, terminal, and refining projects by 2030. It also plans to allocate around 40 percent of its lending to natural gas projects that support the energy transition while prioritizing projects that could generate between 500,000 and 1 million direct and indirect jobs across the energy value chain.
source: https://punchng.com/
African Energy Council