FG sets Jan 2025 for operationalisation of $5bn African Energy Bank

Nigeria’s Federal Government has set January 28, 2025, as the deadline for the operationalisation of the $5 billion African Energy Bank (AEB), which will be domiciled in Abuja.

This was disclosed by the Permanent Secretary, Ministry of Petroleum Resources and Executive Board Member, Amb. Nicholas Ella, at the 19th Executive Board meeting of the African Petroleum Producers Organisation (APPO) in Yaoundé, Cameroon.

Amb. Ella, who led a delegation representing Nigeria at the APPO meeting, reiterated Nigeria’s commitment to the ideals of APPO and the immediate establishment of the AEB in Abuja.

“The headquarters building (of the Africa Energy Bank) was inspected by the Technical Team in May 2024, and renovation works for its completion are ongoing,” he said. “Nigeria is fully committed to delivering the building with furnishing to the bank in good time.

“We have the full support of President Bola Tinubu and our National Assembly to actualise this project in Nigeria.”

Ella noted that the Federal Executive Council (FEC), on June 25, 2024, approved the hosting of the bank, while the ratification of the Charter and Headquarters Agreement is in its advanced stages.

He explained that the FEC also approved and endorsed the Establishment Document of the AEB and instructed the Attorney General and Minister of Justice to commence the process of ratification.

“The Attorney General concluded the process on Sept. 9, 2024, and transmitted the AEB Establishment Documents, which are currently with the President for his assent. Once that is done, it will be forwarded to APPO.”

On equity contribution to the AEB, Ella noted that the country was making efforts to complete its share of the equity contribution to the AEB. He said that apart from the earlier payment of $59.1 million, an additional $10 million was paid into the APPO Account by the Federal Government last week, with the intention of making full payment before the bank’s takeoff.

Nigeria won the hosting rights for the establishment of the AEB Headquarters in July 2024, beating competition from Ghana, Algeria, South Africa, and the Benin Republic.

The AEB, established by APPO in collaboration with the Afriexim Bank, aims to bridge financing gaps in the continent’s oil and gas industry.