A January 2025 date has been set for the commencement of the $5 billion Africa Energy Bank (AEB). The bank, among others would seek to provide alternative source of funding for hydrocarbons projects on the continent.

The AEB which would bridge financing gaps in the continent’s oil and gas industry is being established by the African Petroleum Producers Organisation (APPO) in conjunction with the African Export Import Bank (Afrexim). Secretary General of APPO, Dr Farouk Ibrahim, confirmed 50 per cent of the total fund required for a AEB has been made available by shareholders.

APPO is an 18-member oil producing countries bloc. It drives development in the African energy industry.

Executive Board member representing Nigeria at the African Petroleum Producers Organisation (APPO), Nicholas Ella, made the disclosure at the just concluded 19th executive board meeting of the organisation in Yaounde, Cameroon adding that . Nigeria is fully committed to furnishing and delivering the building to the bank in good time. “This initiative would not only address the financial needs of the energy sector but also provide a platform for mobilising investments in oil and gas projects, which are vital for Africa’s economic growth and development.”

Informed sources in the oil industry told FS in Abuja Nigeria that a technical team recently inspected the AEB headquarters building adding that renovation works are ongoing to complete it and make it ready for the take-off. Nigeria won the hosting rights for the establishment of the AEB headquarters in Abuja in July 2024, after a fierce competition with Ghana, Algeria, South Africa, and Benin Republic.

The ratification of both the charter and headquarters agreement is said to be already at an advanced stage. Ella added: “The Attorney General concluded the process on September 9, 2024, and transmitted the AEB establishment documents, which are currently with the President (Bola Tinubu) 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. He stressed: “Apart from the earlier payment of $59.12 million, an additional $10 million was paid into APPO Account by Nigeria last week. We intend to make full payment before the Bank takes off.

APPO scribe, Dr Ibrahim explained that the bank would have three classes of shareholders with APPO and Afrexim Bank occupying the priority shareholder position. Responding to Nigeria’s presentation, the APPO executive board member from Egypt, Ahmed Selim, was quoted to have described Nigeria’s explanation concerning preparations for the Bank’s take-off as “encouraging.”