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The West African country will be an ideal host to AEB. (Image source: African Energy Chamber)

Following a meticulous review process by the Africa Energy Bank Headquarters Ministerial Selection Committee, Abuja, Nigeria, emerged to be the unanimous choice made during the 45th Extraordinary Session of the African Petroleum Producers’ Organisation Ministerial Council chaired by the Minister of Hydrocarbons of the Republic of the Congo, Bruno Jean Richard Itoua

The strategically rich Nigeria fell perfectly in place with the criteria of judgement that prioritised socio-economic factors, safety, security and accessibility. Honouring the decision, Heineken Lokpobiri, Nigeria’s Minister of State for Petroleum Resources (Oil), assured the Council that the country will provide the necessary facilities for the bank’s timely and effective establishment. 

Nigeria beat Algeria, Benin, Côte d’Ivoire, Ghana and South Africa, that were also competing for the position

Garnering international attention

Nigeria has garnered investment interests not just from international oil majors, but supranational institutions like the World Bank which approved a US$2.25bn package to the country last month as assistance for oil revenue management, fiscal sustainability, economic growth and public services enhancement. Last year, the country successfully weilded a series of strategic engagements with 15 international and national oil and gas companies working in Nigeria – Chevron, TotalEnergies, Shell, NAOC, ExxonMobil, Seplat, Heirs Holdings, Waltersmith, First E&P to name a few. These talks resulted in significant investment opportunities with an estimated US$55.2bn by 2030, of which US$13.5bn is expected to be invested in 2024. 

TotalEnergies, for instance, reached US$550mn final investment decision (FID) with the Nigerian National Petroleum Corporation in June to develop the Ubeta gas field

The West African country will thus be an ideal host to AEB that aims to address Africa's oil and gas funding challenges in the face of global energy transition. A joint venture by APPO and African Export-Import Bank (Afreximbank), AEB will focus on financing both fossil fuels and renewable energy sources across the continent with an initial share capital of US$5bn.