Nigeria has been chosen to host the headquarters of the newly established $5 billion African Energy Bank (AEB).
This decision followed a comprehensive technical inspection by the African Petroleum Producers Organisation (APPO) and Afrexim Bank, who jointly promote the AEB. Their evaluation confirmed Nigeria’s readiness to host the bank.
Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil), announced this in a statement obtained by Advisors Reports on Thursday.
The Minister expressed his excitement about this achievement, highlighting that it reflects Nigeria’s leadership and commitment to the energy sector.
Lokpobiri emphasized that the AEB will provide essential financial support for energy projects, fostering growth and development across Africa.
Earlier, Ambassador Nicholas Ella had affirmed at the closing ceremony of the NOG Energy Week in Abuja that Nigeria would be officially declared the host of the AEB within the week.
The Permanent Secretary also reported that the Nigerian Government has identified a prestigious building in Abuja for the temporary headquarters and opened a secure data room for the technical team’s review.
Additionally, an application for land for the permanent headquarters in the Central Business District of Abuja has been submitted for approval.
In May 2024, President Bola Ahmed Tinubu approved a $100 million investment from four key agencies under the Ministry of Petroleum Resources, surpassing the minimum equity requirement of $83.33 million for Class A shares in the $5 billion Supranational Multilateral African Energy Bank.
Advisors Reports revealed that Nigeria was selected over strong contenders such as Ghana, Benin, Algeria, South Africa, and Cote d’Ivoire.
This strategic victory is poised to significantly impact Nigeria’s oil and gas industry, marking the largest foreign direct investment in the country in over two decades.
The establishment of the AEB in Nigeria is expected to greatly enhance the nation’s GDP, create jobs, improve the financial sector, and promote economic diversification. Additionally, it will aid in managing foreign exchange strategies.
