• Friday, July 12, 2024
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Oil-producing countries move on quick take-off of $5 billion Africa Energy Bank

Oil-producing countries move on quick take-off of $5 billion Africa Energy Bank

…targets Bank’s establishment in September 2024

The African Petroleum Producers’ Organisation (APPO) has begun moves to ensure the quick take-off of the Africa Energy Bank, which will be situated in Abuja, Nigeria.

Last week, Nigeria won the bid to host the $5 billion Bank, which aims to facilitate access to funding for energy projects, thereby catalyzing economic growth and enhancing energy security in Africa.

Speaking during the 18th ordinary meeting of the APPO executive board on Tuesday in Brazzaville, Umar Farouk Ibrahim, APPO Secretary-General urged members to contribute their subscription fees of $83 million, aiming for the bank’s launch in September 2024.

In a statement issued to journalists by the Ministry of Petroleum, Ibrahim said, “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.

“On Friday, July 5, we formally wrote to the Federal Republic of Nigeria. We will discuss how quickly the bank building will be ready and the host country agreement prepared for signature. We already have one member country that has signed the establishment agreement; we need one more signature to proceed.”

In his remarks, Nichola Ella, the Permanent Secretary of the Ministry of Petroleum Resources, reiterated Nigeria’s commitment to the continental bloc’s ideas to enhance energy security in Africa.

Read also: Nigeria gets approval to host $5bn African Energy Bank

According to Ella, 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.

“The gathering of the 18 member countries of APPO in Brazzaville demonstrates our collective dedication to fostering 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,” Ella said.

Ibe Kachikwu, a former Nigerian Minister of State Petroleum Resources, suggested a ten-year plan for the energy industry to encourage an open era for investment.

Kachikwu advised APPO to grow the energy bank’s capital base before investing.