Africa Energy Bank to unlock $120bn for oil, gas projects by 2025

BY MOTOLANI OSENI

The Africa Energy Bank (AEB), with a target asset base of $120 billion, is set to commence operations in Nigeria by the first quarter of 2025, marking a major step towards financial independence for the continent’s oil and gas sector.

Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, confirmed in Lagos that preparations for the bank’s launch are in their final stages, with the building ready and only finishing touches remaining. He emphasised that once operational, the AEB will provide crucial funding for oil and gas projects while supporting Africa’s energy transition.

The fossil fuel-focused institution, a collaboration between Afreximbank and the African Petroleum Producers Organization (APPO), was initially expected to take off by mid-2024. However, with Nigeria now hosting its headquarters, the bank is positioned to drive investment in the energy sector amid declining global financing for fossil fuels.

Lokpobiri highlighted that Africa must take control of its energy future by reducing reliance on foreign capital and policies that do not align with the continent’s development goals. He described the AEB as a transformative initiative that will unlock billions in funding, accelerate infrastructure development, and strengthen Africa’s energy security.

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“This bank represents a shift toward financial autonomy,” Lokpobiri stated. “It allows us to move away from dependency on external policies that do not prioritise Africa’s needs. With this, we take control of our destiny.”

For the AEB to succeed, he stressed the need for strong backing from all African nations, private investors, and regional financial institutions. He also called for greater cooperation among African countries, advocating for frameworks that encourage collaboration rather than competition.

As Nigeria prepares to host the bank, it has also set ambitious oil production targets, aiming to increase output from 1.7 million barrels per day to 2.5 million bpd by the end of the year. Lokpobiri reiterated the government’s commitment to removing obstacles hindering production growth.

With the AEB poised to reshape Africa’s energy financing landscape, stakeholders are hopeful that it will serve as a catalyst for economic transformation and sustainable development across the continent.