Nigeria's Minister of State for Petroleum, Senator Heineken Lokpobiri, has announced that the highly anticipated Africa Energy Bank (AEB) will launch in the first quarter of 2025. The bank aims to finance oil and gas projects and support Africa's energy transition, with an ambitious target of reaching a $120 billion asset base.

The AEB is a joint initiative between Afreximbank and the African Petroleum Producers Organization (APPO), and Nigeria was selected as the host country for the bank's headquarters in Abuja after securing victory over three competing nations. The bank has already secured 45% of its initial capital through financial commitments from key African nations, including Nigeria, Angola, and Ghana.

The AEB's core mandate is to address Africa's funding gap in the energy sector, particularly as global financial institutions face increasing pressure from environmental groups to shift investments away from fossil fuels. With a $5 billion initial capital target, the AEB seeks to drive industrialization and economic growth by ensuring local resource utilization.

The bank will counter the withdrawal of traditional financiers from Africa's oil and gas sector, which is crucial for a continent with over 125 billion barrels of proven crude oil reserves and 600 trillion cubic feet of gas. The African Petroleum Producers Organization (APPO) and Afreximbank are the primary financiers of the Africa Energy Bank, with additional contributions from APPO member states and other financial institutions.

The bank is seeking $83 million from each of its 18 APPO signatories, totaling $1.5 billion in initial funding. Furthermore, AEB aims to collaborate with up to 700 African banks to drive sustainable growth and profitability in the continent's energy sector.

Member states of the APPO include Algeria, Angola, Benin, Cameroon, Chad, the Republic of the Congo, the Democratic Republic of the Congo, Ivory Coast, Egypt, Ghana, Equatorial Guinea, Gabon, Libya, Namibia, Niger, Nigeria, Senegal, and South Africa.

Given Africa's significant energy poverty, the bank will play a key role in securing sustainable energy access. The launch of the Africa Energy Bank is expected to have a significant impact on the continent's energy sector, driving growth and development in the region.

In conclusion, the launch of the Africa Energy Bank in Q1 2025 marks a significant milestone in Africa's energy transition. With its ambitious target of reaching a $120 billion asset base, the bank is poised to play a crucial role in financing oil and gas projects and supporting Africa's energy transition.