The long-awaited Africa Energy Bank (AEB) is set to launch in the first quarter of 2025, according to Nigeria’s Minister of State for Petroleum (Oil), Senator Heineken Lokpobiri.
The bank aims to finance oil and gas projects while supporting Africa’s energy transition, with a long-term goal of reaching a $120 billion asset base.
Originally scheduled to begin operations in January 2025, AEB is a joint initiative between Afreximbank and the African Petroleum Producers Organization (APPO).
Nigeria secured the hosting rights for the bank after outcompeting three other nations, reinforcing its status as Africa’s leading oil producer.
“The building is ready, and we are making final preparations. By the end of this quarter, the bank will take off,” Lokpobiri stated.
The AEB headquarters will be in Abuja, with 45% of its initial capital already secured through financial commitments from key African nations, including Nigeria, Angola, and Ghana.
AEB was established to bridge Africa’s energy funding gap, particularly as global financial institutions increasingly withdraw from fossil fuel investments under pressure from environmental groups.
With a $5 billion initial capital target, the bank will focus on ensuring local resource utilization to drive industrialization and economic growth.
It will also counter the exit of traditional financiers from Africa’s oil and gas sector, which is critical for a continent holding 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, with additional contributions from APPO member states and other financial institutions.
AEB is seeking $83 million from each of its 18 APPO signatories, totaling $1.5 billion in initial funding.
Additionally, AEB plans to collaborate with up to 700 African banks to drive sustainable energy growth and profitability across the continent.
AEB’s member states 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.
With Africa facing significant energy poverty, the bank is expected to play a crucial role in securing sustainable energy access while fostering economic growth across the region.
