Nigeria wins bid to host new $5bn Africa Energy Bank

AFRICAN BUSINESS AND ECONOMYJuly 8, 2024 at 2:45 PM UTC

TLDR

APPO chooses Abuja, Nigeria, as the headquarters for Africa Energy Bank (AEB), jointly founded by Afreximbank.
AEB aims to address funding challenges in Africa's oil and gas industry amid the global energy transition.
The supranational AEB will offer financial backing for emerging energy projects in Africa, ensuring sector sustainability during the shift to renewable sources.

The African Petroleum Producers Organization (APPO) has selected Abuja, Nigeria, to host the headquarters of the newly established Africa Energy Bank (AEB). The AEB initially has $5 billion to spend when it takes off later this year.

Jointly founded by APPO and the African Export-Import Bank (Afreximbank), the AEB aims to tackle the funding challenges faced by Africa’s oil and gas industry amid the global energy transition.

As a supranational institution, the AEB will provide financial support for African energy projects, including emerging oil and gas initiatives across the continent, ensuring the sector's sustainability and growth during the transition to renewable energy sources.

Key Takeaways

Nigeria’s successful bid to host the Africa Energy Bank (AEB) was bolstered in late May after ratifying the bank’s charter and with President Bola Tinubu approving a $100 million investment, surpassing the required $83.33 million for member states. Analysts note that Nigeria, as a founding member of APPO and one of Africa’s leading energy producers, has demonstrated strong interest in the bank. This initiative aligns with Nigeria’s efforts to attract investment into its oil and gas industry, which has been lagging in recent years.

African Petroleum Producers Organization

APPO

AEB

Africa Energy Bank

African Export-Import Bank

Afreximbank

Energy

Oil & Gas