Nigeria chosen to host the headquarters of the African Energy Bank

The African Petroleum Producers Organisation (APPO) took an historic decision this morning at the 45th extraordinary session of its Council of Ministers. The virtual meeting was chaired by H.E. Bruno Jean Richard Itoua, Minister of Hydrocarbons of the Republic of Congo and Vice-Chairman of the APPO Council of Ministers. The Council announced that the African Energy Bank (AEB) will be based in Abuja, the capital of the Federal Republic of Nigeria.

The Bank's Head Office Selection Process

The choice of the Nigerian capital as the Bank's headquarters follows a rigorous process led by a Ministerial Selection Committee chaired by the Libyan Minister of Oil and Gas, H.E. Mohamed Oun. The Committee also included the Ministers of Angola, Senegal and Venezuela, as well as the Chairman of Afreximbank. The objective criteria taken into account included socio-economic factors, security and accessibility.

H.E. Bruno Jean Richard Itoua congratulated all the countries that had expressed an interest in hosting the headquarters, stressing that commitment to the Organisation's cause remained paramount. He also thanked the Member Countries that had already begun to pay their subscriptions to the Bank's share capital, seeing this as an expression of confidence in the project.

Reactions and expectations

The APPO Chairman congratulated Nigeria on being chosen and urged the country to provide all the necessary facilities for the Bank to get off the ground quickly and efficiently. In response, Nigeria's Minister of State for Petroleum Resources and Petroleum, Senator Heineken Lokpobiri, expressed his gratitude for the unanimous decision and assured that Nigeria would exceed expectations in hosting the Bank.

An Institution to Meet the Energy Challenge

The African Energy Bank is a joint initiative of APPO and Afreximbank. It aims to address the financing challenges facing the African oil and gas industry, particularly as a result of the Energy Transition. With traditional financiers withdrawing from the industry, especially in Africa, AEB fills the gap by offering tailored financial solutions.

When fully established, the AEB will operate as a supranational financial institution, similar to other institutions specialising in development finance. It will focus primarily on energy projects, covering both fossil fuels and renewable energies.

Share capital of $5 billion

The Bank's initial share capital is set at US$5 billion, subscribed by APPO Member Countries, their national oil and gas companies, and other investors. In addition to the founding institutions, Afreximbank and APPO, other African countries that are not members of APPO and investors from outside Africa will also be able to participate, provided they share the Bank's philosophy.

With this development, Africa is taking a significant step towards greater energy and financial autonomy, ensuring a more stable and sustainable energy future for the continent.