New Telegraph

Nigeria Gets Afreximbank’s 60% Of $30bn Oil & Gas Funding

The African Export-Import Bank, AfreximBank on Wednesday said so far, it has spent $30 billion to fund projects in the industry with Nigeria getting 60 percent of the funding

President, Afreximbank, Professor Benedict Oramah who made the disclosure during the National Oil Companies Forum at the ongoing Nigeria International Energy Summit, NIES, in Abuja, stressed the need for Africa to find innovative solutions to its energy deficit.

Oramah who was represented by Mr. Haytham ElMaayergi, Executive Vice President, Global Trade Bank, regretted that Africa does not have an extensive traditional energy infrastructure, and with abundant oil, gas, solar hydro resources, the bulk of the population still lacks access to reliable and affordable energy.

While noting that Nigeria has been provided with an opportunity to leapfrog in a more efficient way to renewable technology, he added that Afreximbank would be managing the proposed Africa Energy Bank to ensure its best chance of success.

He said: “Our aspiration in the area of energy security and energy transition will remain aspiration unless we have access to adequate funding resources that we control.

“With a lot of international banks withdrawing funding out of the oil and gas sector, the investment in the industry has become severely limited with the corresponding impact on exploration and production.

“Afreximbank has intervened in a big way, quickly becoming the largest financier of oil and gas deals in the continent. The support provided to the sector by the bank is in excess of 30 billion US dollars. Nigeria has been one of the largest beneficiaries accounting for almost 60 percent of the total funding of the sector.

“And it’s important to the point that afreximbank has been able to make those modest contributions in the oil and gas sector because the bank is predominantly African in ownership and control.

“The strategic goal of the Africa Energy Bank is to play a leadership role in shaping the energy landscape in Africa through strategic partnership with proven African and international financial institutions and investors and also to provide sustainable financing in this area of the oil and gas sector.

“The Africa energy bank will need considerable support to get off the ground. We will need support from member states to achieve the level of capitalization that is adequate to support the energy sector.”

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