Nigeria beats Ghana, South Africa to host $5bn African Energy Bank

The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, disclosed this while speaking to journalists after a virtual meeting of the council of ministers of the African Petroleum Producers Organisation (APPO) on Thursday.

Nigeria emerged as the preferred host nation amidst stiff competition from Ghana, Benin, Algeria, South Africa, and Côte d'Ivoire.

What the minister said:

“As the Minister for Petroleum Resources (Oil), I am incredibly proud of this achievement. The African Energy Bank will be a cornerstone for financing and advancing energy projects across Africa, promoting innovation, sustainability, and economic growth,"

“The African Energy Bank will be a cornerstone for financing and advancing energy projects across Africa, promoting innovation, sustainability, and economic growth,"

He stressed that the development is a remarkable victory for Nigeria and the entire African continent.

"It symbolizes our collective efforts to harness and develop our rich energy resources for a brighter, more sustainable future. Thank you to everyone who made this possible. Together, we are shaping the future of energy in Africa, starting right here in Nigeria,” he said.

Lokpobiri also noted that the bank’s share capital, set at $5 billion, is expected to be subscribed over three years, with an initial capital of $1.5 billion reserved for APPO member countries.

Presently, APPO has a total of 18 members across Africa, all of which are either oil or gas-producing nations, or both.

AfreximBank has been supporting APPO in establishing the bank and has approved an investment of $1.75 billion for this purpose.

The lender stated it had partnered with over 700 banks across Africa and its partners to chart a profitable pathway for the African energy sector.