$5bn African Energy Bank Gets $1.25bn Equity Investment From Afreximbank

Afreximbank is set to transfer its full equity investment of $1.25 billion into the newly established $5 billion Africa Energy Bank (AEB), which is expected to become operational by the end of next month.

During a meeting in Abuja on Wednesday, Afreximbank President, Prof. Benedict Oramah, discussed the bank’s contribution to the AEB with Nigeria’s Minister of State for Petroleum Resources, Heineken Lokpobiri.

The AEB, headquartered in Abuja, Nigeria, is a joint initiative between Afreximbank and the African Petroleum Producers Organization (APPO). With an asset base of $5 billion, the bank is poised to grow its capital to $120 billion in five years, marking a significant step towards energy security and sustainability in Africa.

Afreximbank, as a major partner, is committing its entire equity investment in the oil and gas sector to the bank, demonstrating its dedication to advancing energy infrastructure development across the continent.

During the meeting, Minister Lokpobiri reiterated Nigeria’s strong support for the AEB and its vital role in unlocking Africa’s energy potential. “Nigeria, as a leading oil and gas producer, is well-positioned to leverage this transformative initiative. We encourage industry players to seize this opportunity to invest in Africa’s energy future,” he stated.

Following the meeting, Lokpobiri and Oramah visited the AEB Headquarters to assess the bank’s preparedness ahead of its launch. The visit allowed them to evaluate the bank’s operational readiness and alignment with Africa’s energy development goals.

Speaking on the significance of the AEB, Prof. Oramah highlighted its role in addressing the continent’s energy financing gap. “The establishment of the Africa Energy Bank is a game-changer for the continent,” he said. “It will transform the way Africa finances its energy sector.”

Oramah commended Nigeria for hosting the headquarters of the AEB, expressing confidence that the bank will benefit not only Africa’s energy sector but also Nigeria’s oil and gas industry. He emphasized that the initiative would help propel the continent toward energy self-sufficiency, spurring industrialization, job creation, and economic prosperity.

Minister Lokpobiri reaffirmed Nigeria’s commitment to supporting the AEB’s success. “This bank represents a bold step in ensuring that Africa controls and finances its energy future. It is an avenue for stakeholders to invest in a self-sustaining energy sector that will drive industrialisation, job creation, and economic prosperity,” he added.

As the AEB prepares to begin operations, Nigeria has called on industry stakeholders to engage with the initiative, recognizing the immense opportunities it offers. The successful launch of the AEB will mark a new era in Africa’s energy development, positioning the continent as a global leader in the sector.