Nigeria secures bid to host $5 billion African Energy Bank in Abuja
Nigeria has successfully secured the bid to host the headquarters of the newly established $5 billion African Energy Bank (AEB) in its capital city, Abuja.
This is contained in a statement by the State Minister for Petroleum Resources (oil), Heineken Lokpobiri, on Thursday via his official X account.
Lokpobiri said that the bank would play a crucial role in financing and advancing energy projects across Africa, promoting innovation, sustainability, and economic growth.
Nigeria emerged as the preferred host nation amid competition from Ghana, Benin, Algeria, South Africa, and Cote d’Ivoire.
Lokpobiri assured Nigerians and Africans, that the establishment of the AEB would mark a transformative era in meeting energy needs.
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“I am delighted to share that Nigeria has been selected to host the headquarters of the African Energy Bank! This prestigious honour is a testament to our country’s leadership and commitment to the energy sector.
“As the Minister for Petroleum Resources[Oil], I am incredibly proud of this achievement. The African Energy Bank will be a cornerstone for financing and advancing energy projects across Africa, promoting innovation, sustainability, and economic growth.
“This is a remarkable victory for Nigeria and the entire African continent.
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“It symbolizes our collective efforts to harness and develop our rich energy resources for a brighter, more sustainable future,” Lokpobiri said.
Backstory
Nairametrics had earlier reported the federal government through its petroleum ministry was 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).
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.
He said these factors position Nigeria to be a suitable location for the financing institution in the country.
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.
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Cyrus Ademola is a political and economy analyst with over half a decade experience in journalism, research-based oped, economic reportage and political analysis. His works have been featured on different media outlets, covering from politics to business trends, to crime and security as well as the real estate sector.
