APPO chooses Nigeria to host the Africa Energy Bank.
The 45 th Extraordinary Session of the APPO Ministerial Council held this morning has announced a decision to site the Headquarters of the Africa Energy Bank, AEB, in Abuja, the capital of the Federal Republic of Nigeria. The meeting of the 18 Member Country Organization, which was held virtual, was chaired by HE Bruno Jean Richard Itoua, the Minister of Hydrocarbons of the Republic of Congo, and alternate President of the APPO Council of Ministers.
The Council had considered the Report and recommendations of the Africa Energy Bank, AEB, Headquarters Ministerial Selection Committee, chaired by Libya’s Minister of Oil and Gas, His Excellency Mohamed Oun. Other members of the Committee were the Ministers of Angola, Senegal and Venezuela. Also on the Committee was the President of Afreximbank.
Announcing the processes adopted in arriving at the choice of the Headquarters of the Bank, the Chairman of the Ministerial Selection Committee said that a number of objective criteria including socio-economic factors, security and accessibility were considered. HE Bruno Jean Richard Itoua commended all the countries that expressed interest in hosting the Headquarters for their commitment to the cause of the Organization, noting that irrespective of where the Headquarters is located, the interest of the industry and of all Member Countries shall be paramount in the work of the Bank.
He further commended Member Countries that have already started paying their subscriptions to the share capital of the Bank, saying that it is the best expression of
confidence in the project and assured that the AEB shall serve the best interest of the industry in Africa.
The APPO President, while congratulating Nigeria for getting the hosting right of the AEB, urged the country to ensure that all the necessary facilities are provided for the timely and effective take-off of the Bank. Responding to the decision of the Ministerial Council, Nigeria’s Minister of State for Petroleum Resources, Oil), Senator Heineken Lokpobiri assured the Council that Nigeria shall exceed their expectations. He expressed appreciation to his colleagues for the unanimity in the decision to give Nigeria the hosting right.
The AEB is an international financial institution being established jointly by APPO and Afreximbank with the aim of addressing the funding challenge that African oil and gas industry has come to face as a result of the energy transition, where the traditional financiers of the world’s oil and gas industry have resolved to abandon the industry, especially in Africa.
The AEB when fully established shall be a supra national financial institution similar to other specialized development finance institutions and shall focus on providing funds for energy projects on the African continent. Although its focus shall be the oil and gas industry, the Bank shall be open to investments in all other forms of energy, including renewables.
The Bank’s initial share capital is 5Billion US Dollars and this shall be subscribed to by APPO Member Countries, their National Oil and Gas Companies and other investors.
Additional subscribers, apart from the founder institutions, namely Afreximbank and APPO, are other non-APPO African countries and their National Oil Companies, investors from outside of Africa provided they share the philosophy of the Bank.
Carmen Fifame Toudonou
