The federal government on Thursday reaffirmed its commitment to the early commencement of operations of the $5 billion Africa Energy Bank (AEB), an initiative of members of the African Petroleum Producers’ Organisation (APPO).
In a post on his X handle, Minister of State Petroleum Resources (Oil), Senator Heineken Lokpobiri, noted that he headed the Nigerian delegation to a meeting where members reviewed their compliance with obligations under the organisation.
However, THISDAY reports that APPO members have now missed the Q1, 2025 deadline which it earlier set for the operationalisation of the bank headquartered in Nigeria, Africa’s biggest oil producer.
The Africa Energy Bank, which will fund oil and gas projects and support the continent’s energy transition goals, was expected to launch in the first quarter of 2025 and target an asset base of $120 billion, Lokpobiri said in February.
However, the fossil fuel-focused bank, a partnership between trade finance institution AfreximBank and the APPO, was earlier due to start operations by mid-2024, an Afreximbank official said last year.
“The building is ready, and we are only putting finishing touches to it. By the end of this quarter, this bank will take off,” Lokpobiri had said. Nigeria had beaten three rival African countries for the right to host the multilateral lender.
But in his post, Lokpobiri said that the plan for the kick-off of the bank was on course, explaining that ensuring the bank’s foundation is robust and aligned with its objectives was key.
“As Head of the Nigerian delegation, I attended the APPO meeting, as we reviewed member States’ compliance with obligations under the organisation. A key focus of our discussions was the progress towards the commencement of operations by the Africa Energy Bank (AEB), a strategic initiative designed to enhance energy financing across the continent.
“Notably, member states are steadily fulfilling their statutory commitments, ensuring the bank’s foundation is robust and aligned with its objectives. As the host country, Nigeria is making significant strides in advancing the necessary processes to meet the set targets for the bank’s resumption.
“Our efforts remain resolute, with all stakeholders working collaboratively to achieve the shared vision of a fully operational AEB within the projected timeline. The meeting reaffirmed our collective commitment to strengthening Africa’s energy sector, and we are optimistic about the milestones ahead,” he stated.
Meanwhile, the minister has extended his congratulations to Mr. Ahmadu Musa Kida on his appointment as the Board Chairman of the Nigerian National Petroleum Company Limited (NNPC), and Bashir Bayo Ojulari as the Group Chief Executive Officer (GCEO) of the company as well as to other members of the newly constituted board.
“As we continue the transformation of our energy sector, the Ministry of Petroleum Resources assures you of unwavering collaboration and support. I also call on all industry stakeholders to rally behind the new leadership of NNPC in driving efficiency and sustainability.
“I commend President Bola Tinubu for this strategic decision, which aligns with the Petroleum Industry Act (PIA), further strengthening the sector’s legal framework and positioning it for greater effectiveness,” the minister added.
Emmanuel Addeh
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