The Federal Government has set Jan. 28, 2025 as the
deadline for the operationalisation of the five billion dollars Africa Energy
Bank (AEB).
The bank would be domiciled in Abuja, the Nigeria’s
capital city.
Amb. Nicholas Ella, Permanent Secretary, Ministry of
Petroleum Resources and Executive Board Member, who led a delegation
representing Nigeria at the African Petroleum Producers Organisation (APPO),
disclosed this at the APPO’s 19th Executive Board meeting.
The meeting which had representatives of 13 member
countries was held in Yaounde, Cameroon.
Ella, in a statement on Friday, reiterated Nigeria’s
commitment to the ideals of APPO and the immediate setting up of the AEB in
Abuja.
Nigeria won the hosting right for the establishment of
the AEB Headquarters in July 2024, after it competed with Ghana, Algeria, South
Africa, and Benin Republic.
The AEB which is being established by APPO in
collaboration with the Afriexim Bank, aims to bridge financing gaps in the
continent’s oil and gas industry.
“The Headquarters building (of the Africa Energy Bank)
was inspected by the Technical Team in May 2024, and renovation works for its
completion is ongoing.
“Nigeria is fully committed to delivering the building
with furnishing to the bank in good time. We have the full support of President
Bola Tinubu and our National Assembly to actualise this project in Nigeria,”
Ella said.
Giving further insights, Ella said the Federal
Executive Council (FEC), on June 25, 2024, approved the hosting of the bank
while the ratification of the Charter and Headquarter’s Agreement are in
advanced stage.
He said the FEC also approved and endorsed the
Establishment Document of the AEB, and instructed the Attorney General and
Minister of Justice, to commence with the process of ratification.
“The Attorney General concluded the process on Sept.
9, 2024 and transmitted the AEB Establishment Documents, currently with
the President for his assent. Once that is done, it will be forwarded to APPO,”
he added.
On equity contribution to the AEB, Ella said Nigeria
was making efforts to complete its share of the equity contribution to the AEB.
He said apart from the earlier payment of 59.1 million
dollars, an additional 10 million dollars was paid into APPO Account by the
federal government last week, with the intention to make full payment before
the bank takeoff.
“Nigeria wishes to advocate for the establishment and
funding of the Africa Energy Bank as part of APPO’s budgetary plans.
“This initiative would not only address the financial
needs of the energy sector but also provide a platform for mobilising
investments in oil and gas projects, which are vital for Africa’s economic
growth and development,” he said.
In reaction to Nigeria’s update on preparations for
the bank’s operationalisation, the Secretary-General of APPO, Dr Farouk
Ibrahim, said 50 per cent of the funds needed for the AEB take off was
available.
Ibrahim, who urged APPO member countries to keep up
the tempo for the bank’s take off, explained that it would have three classes
of shareholders with APPO and Afrexim occupying the priority shareholder
position.
Responding to Nigeria’s presentation, the APPO
Executive Board member from Egypt, Hisham Selim, described Nigeria’s
explanation concerning preparations for bank’s take off as “encouraging.”
The date for the AEB’s take-off coincides with the
38th anniversary of the establishment of APPO, an 18-member country bloc that
drives the development of the African energy industry.
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