President Bola Tinubu has approved a new investment in the energy sector to the tune of 100 million United States dollars.
Permanent Secretary, Federal Ministry of Petroleum Resources, Ambassador Nicholas Ella, who made this known in a statement at the weekend, said the investment is part of efforts to ensure successful hosting of African Energy Bank headquarters in Abuja.
He said a technical inspection team comprising representatives from the African Petroleum Producers Organization (APPO) and Afrexim Bank has concluded their assessment, affirming Nigeria’s readiness to host the headquarters of the African Energy Bank (AEB), slated to be established by July 2024.
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PlatinumPost reports that after the initial bidding phase earlier this year, Nigeria, along with Ghana, Benin, and Algeria, emerged as finalists competing for the privilege to host the Supranational Multilateral $5 Billion Africa Energy Bank.
This institution aims to finance Africa’s hydrocarbon resources, bolster energy transition efforts, and align with net zero 2060 commitments.
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According to the statement, the Ministry has engaged expert opinions from the Federal Ministry of Justice and consultants in January 2024.
He said the Federal Executive Council and National Assembly are now finalizing the ratification process, ensuring that the AEB operates with the required privileges and immunities.
According to the statement, to demonstrate its commitment, Nigeria has earmarked a prestigious building in Abuja as the temporary headquarters and established a secured data room for the technical team’s scrutiny.
Additionally, an application for land for the permanent headquarters in Abuja’s Central Business District has been submitted for approval.
“President Bola Ahmed 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, ” the statement said
The Ministry also confirmed Nigeria’s collaboration with Nigerian National Petroleum Company Ltd. (NNPCL) and the Nigerian Content Development Monitoring Board (NCDMB) to fulfill all eligibility criteria.
Hosting the $5 Billion Africa Energy Bank in Nigeria is anticipated to yield significant benefits, including boosting the nation’s GDP, employment, financial architecture, and inclusion, while driving economic diversification and supporting foreign exchange management strategies.
Furthermore, the bank’s presence is expected to catalyze development, exploration, and investment initiatives within the oil and gas sector, enhancing market proximity and scaling up production and capacity.
The launch of the African Energy Bank is projected to attract an additional $2 billion in equity from African Sovereign wealth funds, National oil companies, and other institutional investors, aligning with the bank’s vision and mission. Afrexim-Bank has pledged $1.250 billion as a major investor in class A shares alongside APPO members.