Business

Nigeria bids to host $5 billion Africa Energy Bank Headquarters in Abuja  

The federal government through its petroleum ministry is bidding to host the headquarters of the newly established $5 billion Africa Energy Bank (AEB) in Abuja, the federal capital territory.  

The campaign for the headquarters to be in Abuja was led by heads of ministries of petroleum resources to the 18 countries members of the African Petroleum Producers Organization (APPO).  

The Minister of Petroleum Resources (Oil), Heineken Lokpobiri, on Monday, appealed to the members to vote for Nigeria as the headquarters of the financial institution during the bidding rounds in Abuja. 

According to Lokpobiri, Nigeria is the leading country when it comes to the oil and gas sector, with an oil reserves of over 37 billion barrels.  

“Whether you are producing 1,000 barrels a day or 1.5 million barrels a day, you have only one vote. This is why all APPO members are very important.  

“That is why, in addition to my communication to different ministers of petroleum products of APPO, you that are in Abuja here can help deliver our message to your home countries,” Lokpobiri told stakeholders in Abuja on Monday.  

More Insights 

  • In his own remarks, Nicholas Agbo, the permanent secretary of the Ministry of Petroleum Resources, highlighted that Nigeria is leveraging its abundant energy resources to drive innovation and attract significant investments. 
  • In addition to fostering innovation and investment, Agbo emphasized the importance of diversification across the energy value chain.  
  • By expanding into various energy sectors, Nigeria seeks to enhance its energy security, reduce dependence on a single energy source, and build a more sustainable and resilient energy industry 
  • According to Agbo, this strategic approach is expected to not only benefit the economy but also improve the overall quality of life for its citizens. 

“By situating the Africa Energy Bank in Abuja, Nigeria seeks to leverage its energy wealth to catalyze innovation, investment and economy diversification across the continent.  

“This initiative will help ensure energy security and resilience for generations to come,” Agbo noted. 

What you should know 

The $5 billion  Africa Energy Bank is a brainchild of the Africa Petroleum Producers’ Organization (APPO).  

The bank which is equally funded by the Afreximbank is set to fill the imminent void of the withdrawal of funding for oil and gas projects in Africa by the traditional financiers.  

According to the report, Afreximbank approved the total sum of $1.7 billion as an investment for the Energy Bank, making it one of the main investors in the financial institution.  

So far, APPO has a total of 18 members across Africa, all of which are either oil or gas-producing nations, or both.  


Source: TheTimes.com.ng.

Back to top button