The Nigerian government has set January 28, 2025, as the deadline for the kickoff of the $5 billion Africa Energy Bank in Abuja, the nation’s capital city.
A Nigerian delegation led by Ambassador Nicholas Ella, the Permanent Secretary, Ministry of Petroleum Resources, and Executive Board Member representing Nigeria at the African Petroleum Producers Organization (APPO), made the disclosure at the 19th Executive Board meeting of the Organisation in Yaounde, Cameroon.
Ambassador Ella, in a statement issued on Friday by the Federal Ministry of Petroleum Resources, reiterated Nigeria’s commitment to the ideals of APPO and the immediate setting up of the energy bank which aims to bridge financing gaps in the continent’s oil and gas industry.
Nigeria, in July 2024 was declared the winner of the hosting right for the establishment of the Africa Energy Bank (AEB) Headquarters after it competed with Ghana, Algeria, South Africa, and the Benin Republic.
Ella said, “I am pleased to address the Executive Board (EB) meeting on this very important subject matter – the take-off of the Africa Energy Bank Headquarters in Abuja, Nigeria.
“As you are no doubt aware, the Headquarters building (of the Africa Energy Bank) was inspected by the Technical Team on 24th May 2024, and renovation works for its completion is ongoing. Nigeria is fully committed to delivering the building with furnishing to the bank in good time. We have the full support and cooperation of Mr President and our National Assembly to actualise this project in Nigeria.”
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The date for the Bank’s take-off coincides with the 38th anniversary of the establishment of APPO, an 18-member country bloc that drives the development of the African energy industry.
He added that the “ratification of both the Charter and Headquarters Agreement are in an advanced stage. In its decision, the FEC also approved and endorsed the Establishment Document of the AEB and instructed the Attorney General and Minister of Justice to commence with the process of ratification.
“The Attorney General concluded the process on 9th September 2024 and transmitted the AEB Establishment Documents, which are currently with His Excellency, the President for his assent. Once that is done, it will be forwarded to APPO.”
On equity contribution to the AEB, Ella said Nigeria is currently making efforts to complete her own share of the equity contribution to the AEB. “Apart from the earlier payment of $59,120,000:00, an additional $10 million was paid into the APPO Account by the FGN (Nigeria) last week. We intend to make full payment before the bank takes off.
“Nigeria wishes to advocate for the establishment and funding of the Africa Energy Bank as part of APPO’s budgetary plans. This initiative would not only address the financial needs of the energy sector but also provide a platform for mobilizing investments in oil and gas projects, which are vital for Africa’s economic growth and development.”
In his remarks, Omar Farouk Ibrahim, the Secretary General of APPO said 50 per cent of the funds needed for the AEB take-off was available, adding that the Bank would have three classes of shareholders with APPO and Afrexim occupying the priority shareholder position.
“I would like to urge APPO member countries to keep up the tempo for the Bank’s take-off,” Ibrahim said.
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