APPO Executive Board members met for the first time Tuesday in Yaounde, Cameroon, with Amb Nicholas Ella, Permanent Secretary, Ministry of Petroleum Resources.
The $5 billion Africa Energy Bank, which will be based in the capital city of Abuja, will formally open on January 28, 2025, according to the Nigerian government.
Ambassador Nicholas Ella, Permanent Secretary of the Ministry of Petroleum Resources and Executive Board Member of Nigeria at the African Petroleum Producers Organization (APPO), headed a Nigerian delegation that announced this decision.
The statement was made at the 19th Executive Board meeting of APPO, which was held in Yaounde, Cameroon, on Wednesday.
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The Ministry of Petroleum Resources issued a statement on Friday in which Ambassador Ella reiterated Nigeria’s commitment to the objective of APPO and the expeditious establishment of the energy bank in Abuja.
In July 2024, Nigeria won the privilege to host the Africa Energy Bank (AEB) Headquarters following a competitive competition that included Ghana, Algeria, South Africa, and the Benin Republic. The AEB is seen as a key organization for filling funding shortages in Africa’s oil and gas industry.
Ambassador Ella said, “I am honored to speak to the Executive Board (EB) meeting on this crucial topic: the opening of the Africa Energy Bank Headquarters in Abuja, Nigeria.”
“As you are undoubtedly aware, the Headquarters building (of the Africa Energy Bank) was inspected by the Technical Team on 24th May 2024, and renovation works for its completion are ongoing,” he added, providing more information about Nigeria’s preparedness for the bank’s establishment. Nigeria is totally committed to providing the bank with the building and furnishings on schedule. As officials from 13 member nations applauded, Ella said, “We have the full support and cooperation of Mr. President and our National Assembly to actualize this project in Nigeria.”
The 38th anniversary of APPO, an 18-member alliance dedicated to developing Africa’s energy sector, will coincide with the bank’s official launch date. Through their relationship, APPO and Afreximbank are establishing the AEB.
Ambassador Ella gave guests additional information, pointing out that on June 25, 2024, the Federal Executive Council of Nigeria “approved the hosting of the Bank.” “Both the Headquarters Agreement and the Charter are in advanced stages of ratification,” he said. Additionally, the FEC approved the AEB’s Establishment Document and directed the Attorney General and Justice Minister to initiate the ratification procedure.
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Ella stated that the Attorney General completed the procedure on September 9, 2024, and that the AEB Establishment Documents have since been sent to the President for his or her permission before being sent to APPO.
Ella mentioned that Nigeria has been trying to finish its equity commitments to the AEB in relation to its financial commitment. “The Federal Government of Nigeria put an extra $10 million into the APPO Account last week in addition to the $59,120,000.00 that was previously paid. Before the bank takes off, we plan to pay in full.
“This initiative would not only address the financial needs of the energy sector but also provide a platform for mobilizing investments in oil and gas projects, which are vital for Africa’s economic growth and development,” said Ambassador Ella, who also argued for the AEB’s creation and funding within APPO’s budgetary plans.
APPO Secretary-General Dr. Omar Farouk Ibrahim responded to Nigeria’s progress report by confirming that half of the monies needed to begin AEB have been obtained.
The bank will have three classes of shareholders, with APPO and Afreximbank as priority shareholders, Dr. Ibrahim stated, adding, “I would like to urge APPO member countries to keep up the tempo for the Bank’s take-off.”
Nigeria’s update was deemed “encouraging” by Egypt’s APPO Executive Board delegate, Hisham Ahmed Selim, who acknowledged the nation’s efforts to establish the bank.
