Africa Energy Bank targets $120bn in assets, eyes Q1 launch

The proposed Africa Energy Bank, which aims to fund oil and gas projects across the continent, is set to start operations by the first quarter of 2025, with an ambitious target to hit $120 billion in assets.

The bank, a partnership between Afreximbank and the African Petroleum Producers Organization (APPO), is meant to help plug a funding gap in Africa amid pressure on major banks from environmental groups to shift investment dollars away from climate-warming oil and gas projects.

“The building is ready, and we are only putting finishing touches to it, by the end of this quarter, this bank will take off,” said Heineken Lokpobiri, the minister of state for petroleum resources (Oil).

He called for stronger regional collaboration, investment in human capital, and innovation to ensure that African nations can compete globally. However, he warned that without addressing energy poverty, the continent risks leaving millions behind in the transition to cleaner energy.

While acknowledging the global push for renewable energy, Lokpobiri stressed that Africa must adopt a balanced approach.

Read also: Nigeria must fix energy poverty before energy transition – Lokpobiri

He outlined a two-pronged strategy: optimising hydrocarbon resources to diversify economies and investing in renewables to secure long-term energy stability.

“The global transition to cleaner energy is not a threat; it is an opportunity,” he said. “But sustainability is not just about the environment; it is about our people. Host communities must benefit, and our children must inherit an industry that prioritises education, healthcare, and infrastructure.”

Lokpobiri also highlighted the need for Africa to take control of its energy financing. He announced Nigeria’s leadership in establishing the African Energy Bank (AEB), a landmark initiative aimed at providing tailored funding for the continent’s energy needs.

“The African Energy Bank represents a shift toward financial autonomy,” he explained. “It allows us to move away from dependency on foreign capital and external policies that do not align with Africa’s development priorities.”