The African Export-Import Bank (Afreximbank) has raised $19 billion to support the establishment and operation of the African Energy Bank (AEB).
Disclosed by Heineken Lokpobiri, minister of State for Petroleum Resources (Oil), during the opening ceremony of the Nigerian Pavilion at the ongoing Offshore Technology Conference (OTC) in Houston, Texas, the pavilion was hosted by the Petroleum Technology Association of Nigeria (PETAN) under the theme: “Africa’s Energy Renaissance: Leveraging Innovation and Natural Gas for Sustainable Development.”
The Minister emphasised the significant role the investment will play in tackling and overcoming energy poverty while driving economic growth and improving lives.
He advocated for collaboration amongst African countries to combat energy poverty, emphasising the need for collective action and shared strategies to enable the development of the energy sector and pave the way for significant investment in large-scale energy projects.
Lokpobiri underscored the significance of establishing unified policies that tackle Africa’s unique circumstances and cautioned that fragmented efforts would fail in tackling the continent’s energy deficit effectively.
He stated that the prevailing global discourse on energy transition is largely influenced by geopolitical considerations.
Reiterating the importance of regional collaboration, he stated that the African Petroleum Producers Organisation (APPO) is currently building the African Energy Bank to mitigate the funding deficit and eventually eradicate energy poverty from the continent.
According to Lokpobiri, the African Energy Bank (AEB) will begin operations within the current quarter. He advised African nations with investments overseas to rechannel them into AEB to boost the continent’s energy stability.
Addressing Ghana’s involvement in oil and gas, he urged Ghana to learn from Nigeria’s past experiences to avoid mistakes.
He added that John Abdullahi, Ghana’s Minister of Energy and Green Transition, acknowledged Nigeria’s role in the sector, and the country is eager to learn from Nigeria’s experience.
The AEB was established to address Africa’s funding gap in the energy sector and was initially expected to begin operations in the first quarter of 2025. APPO and Afreximbank are the primary financiers of AEB, with additional contributions from APPO member countries and other financial organisations.
