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    Thursday, July 4, 2024

    Nigeria Successfully Secured Rights for Establishment of Africa’s $5 billion Energy Bank

    Nigeria has successfully secured the privilege of hosting the headquarters of the esteemed African Energy Bank (AEB), valued at $5 billion, following a rigorous bidding process.

    This decision was reached after a thorough technical inspection conducted by a team from the African Petroleum Producers Organisation (APPO) and Afrexim Bank, the esteemed joint promoters of the AEB. The inspection confirmed Nigeria’s exceptional preparedness to serve as the host nation for this significant continental bank.

    The Ministry of Petroleum Resources has approved a $100 million investment from four of its agencies, surpassing the minimum equity requirement of $83.33 million for Class A shares.

    Following an extraordinary meeting of the Council of Ministers, the African Petroleum Producers’ Organization (APPO) has decided to award the hosting rights to Nigeria.

    This decision is considered a significant milestone for the continent’s energy sector and highlights Nigeria’s pivotal role in Africa’s energy landscape.

    Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, made this announcement in Abuja on Thursday.

    He expressed his appreciation for the support provided by President Tinubu in Nigeria’s endeavor to host the Bank.

    He also extended his gratitude to the council for their trust in Nigeria’s capabilities. He stated, “This decision aligns with our shared aspiration to develop African solutions to address African energy challenges.”

    “The African Energy Bank will play a pivotal role in furnishing the requisite financial support for energy ventures that will propel economic growth and advancement across the continent.”

    Nigeria was chosen as the host country after facing strong competition from Ghana, Benin, Algeria, South Africa, and Cote D’Ivoire.

    This selection underscores Nigeria’s substantial energy sector and its strategic perspective for the continent’s energy future.

    Lokpobiri reassured Nigerians and Africans that the establishment of the African Energy Bank would herald a transformative period in addressing energy requirements.

    “We are dedicated to ensuring that this Bank will not only advance Nigeria but also serve as a beacon of progress for the entire continent,” he emphasized, adding, “Our objective is to promote sustainable energy solutions that are both innovative and inclusive.”

    The Bank Is anticipated to expedite the procurement of funding for energy-related projects, thereby acting as a catalyst for economic expansion and fortifying energy security.

    The minister further underscored that this initiative aligns with the overarching goals of the African Union’s Agenda 2063, which envisions a thriving and self-sufficient Africa.

    Lokpobiri emphasized the spirit of collaboration among APPO members and their shared aspiration for a unified and energy-secure Africa. He expressed his gratitude to Tinubu for his unwavering support and to the Council of Ministers for their trust in Nigeria’s capability to spearhead this crucial initiative.

    This strategic move places Nigeria in a favorable position to secure the bid, potentially transforming the nation’s oil and gas industry.

    If headquartered in Nigeria, the AEB is anticipated to become the largest single foreign direct investment inflow into the country in over two decades.

    The establishment of the African Export-Import Bank (AEB) in Nigeria is projected to have a substantial positive impact on the country’s economic landscape. It is anticipated that the AEB will contribute significantly to the growth of Nigeria’s Gross Domestic Product (GDP), employment opportunities, financial infrastructure, and economic diversification. Furthermore, the AEB is expected to play a pivotal role in supporting Nigeria’s foreign exchange management strategies.

    With an initial capital investment of $5 billion, the AEB is poised for rapid growth. It is projected that the bank’s assets will surpass $120 billion within a seven-year timeframe, making it the third-largest bank in Africa and the preeminent financial institution in Nigeria in terms of shareholders’ equity.

     

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