Nigeria will host the newly established Africa Energy Bank (AEB), prevailing over three other competing countries to become the multilateral lender's home.
According to a statement from the Ministry of State Petroleum Resources, the final decision, made at a special Council of Ministers of the African Petroleum Producers Organization (APPO) meeting, places Nigeria – Africa's leading oil producer – at the forefront of Africa's energy landscape.
“The African Energy Bank will be a cornerstone for financing and advancing energy projects across Africa, promoting innovation, sustainability, and economic growth,” said Heineken Lokpobiri, Nigerian Oil Minister, on social media platform X.
“This is a remarkable victory for Nigeria and the entire African continent, symbolising our collective efforts to harness and develop our rich energy resources for a brighter, more sustainable future,” he added.
The state-owned Nigerian National Petroleum Company (NNPC) recently declared a state of emergency on production in Nigeria’s oil and gas industry in an effort to increase its crude oil production and reserves.
At the Nigeria Oil & Gas Conference and Exhibition in Abuja on 2 July, NNPC’s CEO, Mele Kyari, said: “We have declared war on the challenges affecting our crude oil production. War means war. We have the right tools. We know what to fight.”
Nigeria's bid to host the AEB gained momentum at the end of May after the country ratified the bank's charter and President Bola Tinubu sanctioned a $100m (N153.1bn) investment, surpassing the required $83.33m for member states, according to Reuters.
The Petroleum Ministry’s Permanent Secretary, Nicholas Agbo Ella, has also advocated for more stakeholder engagement and collaboration to ensure the success of Nigeria's energy sector.
He made the call in his closing remarks at the 2024 NOG Energy Week Strategic Conference.
According to Agbo Ella, these collaborations were essential for driving innovation, addressing challenges and achieving the country’s energy objectives.
“For Nigeria, this transition presents both opportunities and challenges. We must embrace renewable energy while ensuring that our oil and gas resources are utilised efficiently and responsibly,” he said.
Ella stressed the importance of establishing a favourable environment with clear policies, regulatory stability and financial benefits to attract and maintain increased investments in the energy sector.
The permanent secretary highlighted the Nigerian Government's efforts to promote alliances between the public and private sectors and ensure that the “investment climate is conducive to both local and international investors”.
Reuters reported that Nigeria, a founding member of APPO, has shown strong interest in the bank as the country makes a new push for investment in its lagging oil and gas industry.
Nigeria currently produces around two million barrels of oil a day and the nation’s petroleum industry accounts for about 9% of its gross domestic product.
