…Pledges To Surpass $5bn Initial Capital

…lobbies envoys of APPO member countries

…lists reasons Nigeria most qualified among contenders

The Federal Government in its quest to host the Africa Energy Bank (AEB), the first in the continent, met with envoys of members of the Africa Petroleum Producers Organisation (APPO) to seek their respective country’s support and votes to enable Nigeria’s host headquarters of the bank in Abuja.

Speaking at a dinner in Abuja, the Minister of State Petroleum Resources (Oil), Sen. Heineken Lokpobiri’ noted that establishing the Africa Energy Bank (AEB) represents a bold and strategic move towards ensuring energy security, fostering economic growth, and promoting sustainable development across Africa.

Lokpobiri who argued that Nigeria’s bid to host the headquarters of the AEB was a testament to its unwavering commitment to the aforementioned goals, added that with many indigenous companies willing to buy shares with the bank, Nigeria would surpass the initial capital base of $5 billion, with a promise to also surpass the $120billion projection in the next five years.

He said: “Nigeria is committed to fostering a collaborative environment that will enable the Africa Energy Bank to thrive and achieve its mandate effectively. When you talk about oil and gas, there’s a lot that the rest of the APPO members will get to learn from Nigeria.

“This bank as planned is to have an initial capital of $5 billion but I’m saying we are going to surpass that initial capital base if the headquarters is in Nigeria.

“We have so many indigenous Nigerian companies that are willing to buy shares with the bank. It’s not just about having $5 billion but much more than $5 billion. It’s not just enough for us to have a bank that will start off with $5 billion, the whole idea is to see how we can raise funding to fund oil and gas projects in Africa.

“Please, support Nigeria to host the headquarters of the Africa Energy Bank. Every country has one vote whether you are producing 1,000 barrels a day or whether you are producing 1.5 million barrels per day. You have one vote and that is why all APPO members are very important.

“That is why in addition to my communication with ministers from different countries, it’s important that you who are in Abuja here, we should engage you so that you can help us deliver our message to your Presidents.

“You can’t talk about energy without talking about Nigeria because of the enormous capacity we have developed here. We have companies here that are committed to increasing the share beyond the $120 billion projection in the next five years. Please grant us this indulgence and Africa, APPO membership will never be regretted.

The minister who further added that Nigeria had conceded headquarters of APPO to the Republic of Congo even though APPO berthed in Nigeria in 1987, said Nigeria has achieved significant milestones including a comprehensive assessment by the APPO Afrexim-Bank inspection team, Nigeria offers a strategic geographical location, robust infrastructure, and a dynamic energy sector.

“As we conceded yesterday, we have always conceded. Nigeria does not have the headquarters of any continental organization, none, despite the fact that Nigeria is big in size, we produce enormous oil, and we’ve been very supportive of our brothers in Africa.

“Tonight’s dinner is not just a gathering; it is a call to action. Let us use this opportunity to engage, collaborate, and forge stronger ties.”

Permanent Secretary, Ministry of Petroleum Resources, Nicholas Ella who maintained that Nigeria’s strategic location at the crossroads of West Africa offers an unrivalled nexus of connectivity and accessibility, added that with an extensive network of transportation infrastructure and logistical capabilities, Abuja offers a strategic gateway to the entire African continent, thus providing the bank with unparalleled access to key energy markets, stakeholders, and decision-makers across Africa.

“By selecting Abuja as its host city, the Africa Energy Bank can serve as a linchpin of connectivity, fostering collaboration and catalysing progress on a continental scale. Nigeria’s rich endowment of oil, gas, and renewable energy resources presents an unparalleled opportunity for the Africa Energy Bank to harness the continent’s vast energy potential and drive sustainable development.

Ella who said Nigeria’s burgeoning renewable energy sector characterised by abundant solar and wind resources holds immense promise for powering Africa’s future, also argued that with huge oil and gas reserves, Nigeria seeks to leverage its energy wealth to catalyse innovation, investment, and economic diversification across the continent to ensure energy security and resilience for generations to come.

The Permanent Secretary also noted that Nigeria’s proactive approach to regulatory reform has positioned the country as a paragon of stability and transparency within the global energy landscape.

“Nigeria reaffirms its steadfast dedication to advancing the principles of cooperation, inclusivity, and shared prosperity among African nations,” Ella said.

On his part, Permanent Secretary, of the Ministry of Foreign Affairs, Adamu Lamuwa, described the event as a matter of extraordinary significance, explaining that the gravity of the decision could not be overstated.

Represented by Ben Okoye, he said the bank holds enormous power to shape the trajectory of energy cooperation and development across Africa for generations to come.

“As we embark on this transformative journey together, guided by the principles of cooperation, inclusivity, and sustainability, I am filled with unwavering confidence in our collective ability to realize a future of prosperity and progress for all Africans.

“I am certain that tonight’s deliberations will not only deepen our understanding of the challenges at hand but also pave the way for innovative solutions and enduring partnerships that will drive Africa’s energy sector forward.”

Other reasons being listed Nigeria as the most suitable country to host the AEB include; continued giant strides by Nigerian banks across the continent, Nigeria’s standing as Africa’s leading oil producer and ranks ninth-largest oil exporter globally, Nigeria holding Africa’s largest natural gas reserves and ranks ninth globally with proven reserves of 200 trillion cubic feet and gas production capacity standing at 8.5 billion cubic feet per day

Also, Nigeria commits to providing the needed privileges and immunities as well as other guarantees needed to operate the Treaty and the Bank, Nigeria’s robust energy sector provides a solid foundation for the AEB initiative thus offering a conducive environment for addressing its financing needs.

“Hosting the bank in Nigeria also ensures proximity to key energy technocrats and experts, essential for formulating and implementing effective solutions to Africa’s energy challenges.

The bank’s share capital is expected to be $ 5 billion to be subscribed over three years with an initial capital of $ 1.5 billion reserved for APPO member countries. Afrexim Bank has been supporting APPO in establishing the Bank and has approved an investment of $1.75 billion for the bank.