THE Africa Energy Bank, designed to finance oil and gas projects while supporting Africa’s energy transition goals, is set to launch in the first quarter of 2025, according to Nigeria’s junior oil minister, Heineken Lokpobiri. The bank aims to build an asset base of $120bn, positioning itself as a key player in Africa’s energy landscape.
Initially slated to commence operations by mid-2024, the bank’s launch was delayed slightly. Speaking on Tuesday, Lokpobiri confirmed that preparations are nearly complete. ‘The building is ready, and we are only putting finishing touches to it. By the end of this quarter, this bank will take off,’ he said, as reported by Reuters.
A strategic partnership for Africa’s energy future
The Africa Energy Bank is a joint initiative between the African Export-Import Bank (Afreximbank) and the African Petroleum Producers Organisation (APPO). Its primary focus will be to fund fossil fuel projects, particularly in the oil and gas sectors, while also supporting the continent’s broader energy transition efforts.
Nigeria, Africa’s leading oil producer, successfully outbid three other African nations to host the multilateral lender. This achievement is expected to boost Nigeria’s influence in the region’s energy financing landscape.
Nigeria’s ambitious oil production targets
Lokpobiri also highlighted Nigeria’s plans to ramp up its crude oil production. Drawing a parallel to US President Donald Trump’s aggressive energy policies, he joked that Nigeria would adopt a similar approach to expand its oil output.
Currently producing around 1.7 million barrels per day (bpd), Nigeria aims to increase production to 2.5 million bpd within the year. This ambitious target aligns with the country’s broader economic goals, as oil remains a critical revenue source for Africa’s largest economy.
Driving Africa’s energy growth
The Africa Energy Bank’s establishment comes at a crucial time for the continent, where energy demands are rapidly growing. By providing much-needed financing, the bank is expected to support infrastructure development, enhance energy security, and facilitate the transition to more sustainable energy sources.
With its headquarters in Nigeria and a strong backing from Afreximbank and APPO, the Africa Energy Bank is poised to become a central force in shaping the future of Africa’s energy sector.
