Nigeria, Angola, and Ghana have successfully fulfilled their capital commitments to establish the Africa Energy Bank (AEB), a financial institution aimed at bridging the funding gap in Africa’s oil and gas sector.
This achievement represents 44% of the total funding required from the African Petroleum Producers Organisation (APPO) members to initiate the bank’s operations.
Dr. Omar Farouk Ibrahim, Secretary General of APPO, made the announcement at the recent Congo Energy & Investment Forum.
With an initial capitalization target of $5 billion, the AEB will serve as a key financier for oil and gas projects across Africa, providing an alternative to Western financial institutions that have increasingly reduced support for fossil fuel initiatives due to environmental concerns.
To launch the bank, APPO requested each of its 18 member states to contribute $83 million, aiming for a total of $5 billion.
Alongside Nigeria, Angola, and Ghana, other countries such as Algeria, Benin, the Republic of Congo, Equatorial Guinea, and Ivory Coast have pledged their contributions, with the goal of commencing operations in the first half of 2025
As sub-Saharan Africa’s largest oil producer, Nigeria continues to offer significant opportunities in the oil and gas industry.
The country is gearing up for a major bid round in 2025, and the implementation of the Petroleum Industry Act (PIA) has introduced regulatory reforms designed to increase transparency and attract investment.
Recent Final Investment Decisions (FIDs) in Nigeria highlight the country’s continued progress. These include TotalEnergies’ $550 million Ubeta Gas Field Development and Shell’s $5 billion Bonga North Project.
However, securing additional financing remains crucial for advancing Nigeria’s gas agenda and ensuring its pivotal role in the global energy transition.
Angola is diversifying its energy portfolio, with major deepwater projects such as TotalEnergies’ $6 billion Kaminho Deepwater Project and Eni’s Agogo Integrated West Hub.
The country is also conducting a limited public tender to increase production to 2 million barrels per day. By 2025, Angola plans to finalize an FID for its first green hydrogen project, a 600 MW development led by Sonangol in collaboration with international partners.
In addition, Angola is progressing with the development of its first non-associated gas project, the New Gas Consortium, and expanding the Angola LNG plant with a $12 billion investment to improve gas monetization.
Ghana is reinforcing its position in the energy sector through new commitments from Eni and Tullow Oil. In March, Eni and the Ghana National Petroleum Corporation signed an agreement to enhance offshore exploration, optimize existing assets, and unlock untapped reserves.
This agreement follows recent regulatory reforms aimed at improving fiscal terms and boosting investment.
Tullow Oil remains a key player in Ghana’s energy landscape, with production from the Jubilee and TEN fields playing a significant role in the country’s economic growth.
The company is also preparing for a new drilling program set to begin in May 2025 to bring additional production online.
Beyond hydrocarbons, Ghana is investing in infrastructure modernization, expanding energy access, and increasing investments in renewable energy to secure long-term energy sustainability.
The establishment of the AEB represents a strategic effort to create a financial institution tailored to Africa’s unique energy needs. By offering specialized financing solutions, the bank is expected to accelerate energy project development, enhance energy security, and stimulate economic growth across the continent.
As more countries contribute their capital shares, the AEB is set to play a crucial role in closing financing gaps and ensuring the sustainable expansion of energy resources throughout Africa.
Meanwhile, the Nigerian government has urged International Oil Companies (IOCs) operating in the country to increase investments in the oil and gas sector.
Senator Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil), made this appeal during the Cross Industry Group (CIG) meeting in Florence, Italy.
The meeting focused on addressing challenges, setting expectations, and developing strategies to enhance the sector’s contribution to domestic energy needs and regional expansion across sub-Saharan Africa.
Lokpobiri highlighted that while IOCs have cited challenges with Engineering, Procurement, and Construction (EPC) contractors, these contractors are more likely to commit when firm investment decisions are made.
He emphasized that the Nigerian government has introduced investment-friendly policies, including the president’s executive order to incentivize deepwater investments, and now it is up to the IOCs to make strategic decisions that will boost production and ensure sustainability.
Lokpobiri also called for increased support for local refining efforts, noting that new refineries coming online will require a consistent supply of crude oil.
He stressed the importance of ramping up production to meet both local and international demand and reaffirmed the government’s commitment to enforcing the “drill or drop” provisions of the Petroleum Industry Act (PIA) when necessary.
Lokpobiri also encouraged industry players to consider shared resources for neighboring assets, farm-outs, or reallocating underutilized assets to operators willing to invest.
He warned that assets left undeveloped for extended periods would be reassigned to companies that are ready to develop them, ensuring the assets contribute to both the investor’s and the nation’s growth.
Furthermore, he suggested that oil companies consider farm-out agreements for assets near existing infrastructure, rather than investing in costly new Floating Production Storage and Offloading (FPSO) units.
Osagie Okunbor, Chairman of the Oil Producers Trade Section (OPTS), commended the minister for his engagement with industry leaders and acknowledged the government’s efforts in advancing the sector.
He emphasized that the government’s commitment to creating a conducive investment environment is crucial for boosting production and achieving long-term growth in the Nigerian oil and gas industry.
