By Ndubuisi Micheal Obineme
…APPO, Afreximbank validates Nigeria’s readiness to host African Energy Bank’s headquarters in Abuja.
…President Tinubu approves $100 million new investment fund to ensure Nigeria wins the bid to host the African Energy Bank.
…National Assembly now finalizing the ratification process.
…Application for land regarding the Bank’s permanent headquarters in Abuja’s Central Business District submitted for approval.
Nigeria is gearing up to host the African Energy Bank, as African Petroleum Producers Organization (APPO) and Afreximbank technical inspection teams have completed their fact-finding mission to validate Nigeria’s readiness to host the headquarters of the African Energy Bank (AEB), set to be established in July 2024.
The Permanent Secretary, Ministry of Petroleum Resources, Ambassador Nicholas Agbo Ella, made this known in a statement issued on Friday, said APPO and Afreximbank validation now positions Nigeria favorably to win the bid to host the multilateral $5 billion Africa Energy Bank, which will finance Africa’s oil, gas industry.
According to the statement, the ministry said, “President Bola Tinubu has approved a $100 million investment from four agencies of the Ministry of Petroleum Resources, exceeding the minimum equity requirement of $83.33 million for class A shares.
“This decision positions Nigeria favorably to win the bid, potentially reshaping the country’s oil and gas ecosystem.
It will be recalled in early 2024, APPO Secretary General, Dr. Omar Farouk Ibrahim, announced that seven countries are competing to host the African Energy Bank, which includes Algeria, Egypt, Nigeria, Ghana, South Africa, Benin Republic, and Côte d’Ivoire.
“In our preparation for the bid, the Ministry of Petroleum Resources sought and obtained expert opinions from the Federal Ministry of Justice and consultants in January 2024,” the ministry stated.
According to the ministry, “They reviewed and approved the bank’s proposed Charter, Establishment Agreement, ‘The Treaty,’ and Headquarters Host Agreement. This approval provided the impetus to proceed, and the Federal Executive Council and National Assembly are currently finalizing the ratification process. This will ensure that the AEB receives the necessary privileges and immunities to operate in line with its global vision.
“To demonstrate the country’s commitment, Nigeria has identified a prestigious building in Abuja for the temporary headquarters and opened a secured data room for the technical team’s review. The application form for land for the permanent headquarters in the Central Business District of Abuja has been submitted for approval.”
The ministry also confirmed that the federal government was working diligently with Nigerian National Petroleum Company Limited, and the Nigerian Content Development Monitoring Board, to meet all eligibility criteria.
“Thus, the $5 billion Africa Energy Bank, when headquartered in Nigeria, shall be the largest single foreign direct investment inflow into Nigeria in over two decades with its benefits including:
“The Africa Energy Bank ecosystem shall rank as the third largest bank in Africa and shall be the most prominent bank in Nigeria in terms of shareholders’ funds. It will significantly boost Nigeria’s Gross Domestic Product, employment, financial architecture, inclusion, and propel our economic diversification while supporting foreign exchange management strategies,” the ministry stated.
African Energy Bank would also enhance the development exploration and investment initiatives by independent petroleum producers, commercial service providers, legal and local content drivers, and technology and skills development that would leverage the bank’s proximity to the market and scale up production and capacity.
The bank is part of APPO’s vision to create a new model for financing and growing the African energy industry.