By Abiola Olawale
The Federal Government (FG) has announced a major step toward operationalizing the African Energy Bank (AEB).
This is as FG disclosed that the African Export-Import Bank (Afreximbank) has committed an additional $14 billion in financial exposure, bringing its total support to $19 billion, including $5 billion in initial capital, to ensure the AEB’s successful takeoff.
Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, confirmed this development during a high-level review meeting in Abuja.
The meeting was also attended by the President of the African Export-Import Bank (Afreximbank), Prof. Benedict Oramah, and the Secretary General of the African Petroleum Producers Organization (APPO), Dr Omar Farouk Ibrahim.
The New Diplomat reports that the African Energy Bank, headquartered in Abuja, Nigeria, is a transformative initiative designed to address Africa’s energy financing challenges.
With an initial capital of $5 billion and an additional $14 billion in exposure from Afreximbank, the AEB aims to bridge the continent’s energy funding gap, reduce reliance on external financing, and combat energy poverty.
During the meeting, Lokpobiri confirmed that key legal and governance frameworks for the AEB have been finalized, marking significant progress toward its operational rollout.
This was also contained in a statement issued by the Special Assistant on Media and Communications to the Minister, Nneamaka Okafor, on Sunday.
“The AEB is poised to become a transformative financing platform for energy projects across the continent. This review confirms that every critical milestone is either completed or on schedule, and we remain fully aligned with our continental partners,” Lokpobiri was quoted as saying.
Lokpobiri, during the meeting, was also said to have revealed that discussions on capital mobilization have yielded encouraging commitments from both APPO member states and private investors.
Also speaking, APPO’s Secretary General, Ibrahim, commended Nigeria’s dedication to meeting the requirements for the bank’s establishment.
“We are impressed by Nigeria’s dedication to meeting the stringent requirements for bank establishment. The collaboration we witnessed today signals a unified resolve to deliver affordable, sustainable energy to Africans,” he said.
On his part, Prof. Oramah stated that Afreximbank was ready to provide its structuring expertise and capital strength to ensure the successful launch of the bank.
“Afreximbank is ready to deploy its structuring expertise and capital base to ensure the AEB launches with the strength and credibility required to attract global co-investors,” he said.
The statement noted that the parties had fixed a definitive timeline and date for the inaugural board meeting, which will be publicly announced soon.
