Nigeria has clinched a monumental victory in its bid to host the headquarters of the $5 billion African Energy Bank (AEB) following an intense competitive selection process, Leadership reported.
The decision, announced after a rigorous evaluation by the African Petroleum Producers Organisation (APPO) and Afrexim Bank, underscores Nigeria's readiness and strategic positioning within Africa's energy landscape.
The announcement was made at an extraordinary meeting of the APPO Council of Ministers, where Nigeria's proposal was met with unanimous approval. This decision marks a significant milestone for the continent's energy sector and highlights Nigeria's pivotal role in shaping Africa's energy future.
Under the leadership of President Bola Tinubu, Nigeria's commitment to hosting the AEB is evident with a substantial $100 million investment allocated from four agencies of the Ministry of Petroleum Resources. This funding surpasses the required equity amount for Class A shares, demonstrating Nigeria's readiness to support the bank's operations and ambitions.
Minister of State Petroleum Resources (Oil), Heineken Lokpobiri, expressed gratitude for the support extended by President Tinubu and underscored the importance of the AEB in addressing Africa's energy challenges. "The African Energy Bank will serve as a critical financial backbone for energy projects across the continent, driving growth and development," Lokpobiri affirmed during a press briefing in Abuja.
Nigeria's selection as the host nation came after competing against strong contenders such as Ghana, Benin, Algeria, South Africa, and Cote D’Ivoire. The decision reflects Nigeria's robust energy sector capabilities and its strategic vision for regional energy integration and development.
Lokpobiri emphasized that the establishment of the AEB aligns with the African Union's Agenda 2063, aiming for a prosperous and self-sustaining Africa. He highlighted the collaborative efforts of APPO members and their shared ambition for an energy-secure continent.
The establishment of the AEB in Nigeria is expected to catalyze economic growth, enhance energy security, and boost the country's Gross Domestic Product (GDP). It represents the largest single foreign direct investment inflow into Nigeria in over two decades, potentially transforming the nation's oil and gas ecosystem.
With projections to grow its assets to over $120 billion within seven years, the AEB is poised to become the third-largest bank in Africa and a cornerstone of Nigeria's financial architecture. The bank's presence in Nigeria will not only stimulate employment opportunities but also support economic diversification efforts and strengthen foreign exchange management strategies.