Abuja facility marks major step in continental push to unlock financing for oil and gas projects amid global divestment pressures
Nigeria on Monday formally handed over the fully furnished headquarters of the Africa Energy Bank to the Association of African Petroleum Producing Countries, marking a significant step toward operationalising the continent’s first dedicated energy financing institution.
The handover ceremony, held in Abuja, was led by the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, alongside the President of APPO, Mamadou Sangafowa-Coulibaly, who also serves as Côte d’Ivoire’s Minister of Mines, Petroleum and Energy. Senior officials of APPO and representatives of Afreximbank, the financial partner to the bank, were also in attendance.
The Africa Energy Bank will operate from the third floor of the newly constructed Afreximbank African Trade Centre, located in Abuja’s Central Area.
Speaking at the ceremony, Lokpobiri said the delivery of the headquarters fulfilled Nigeria’s obligations as the host country, adding that the Federal Government was determined to ensure the bank becomes operational no later than June 2026.
“Today, we are formally here to report to you, as President of APPO, that Nigeria has met all our commitments. The last commitment was the bank headquarters,” the minister said. “We are formally handing over this furnished Africa Energy Bank to APPO and Afreximbank. Nigeria is very happy today because this represents the fulfilment of our commitment.”
Lokpobiri explained that several options had been considered before the current facility was selected, noting that the building met the technical and operational requirements of a financial institution and had been fully funded by the Federal Government.
“This is about the third building. The first one was too big, the second one had location issues, and eventually we are happy that we got this one. It is furnished, paid for, and Nigeria is formally handing it over today,” he said.
The minister said all issues that previously slowed the bank’s take-off had now been resolved, stressing the institution’s strategic importance to Africa’s energy sector.
“Earlier, we said the bank needed to take off by the end of April. All the issues that delayed it have now been sorted out, including this building,” Lokpobiri said. “Nigeria is committed to doing everything necessary for the bank to take off because of its strategic importance to oil and gas investment in Africa.”
He said the Africa Energy Bank was conceived in response to Africa’s persistent difficulty in accessing affordable financing for fossil fuel projects, particularly in the face of growing global resistance to hydrocarbon investments.
“Africa’s biggest challenge is finance. The Global North is using finance as a weapon against the developing South, particularly Africa,” he said. “We are victims of global emissions, yet we are told to stop exploiting our God-given resources.”
According to Lokpobiri, recent shifts in global energy discourse have validated Africa’s long-standing position on the need for a balanced energy transition.
“Those who once campaigned against fossil fuels are now talking about the energy mix,” he said. “Even the International Energy Agency has admitted that the world needs up to 700 billion dollars in fossil fuel investment every year for the next 25 years, otherwise we face a global energy crisis.”
He added that fossil fuels would remain dominant for decades, even as Africa continues to grapple with widespread energy poverty.
“Fossil fuel will still be the most dominant source of energy for the foreseeable future. Africa is blessed in abundance, but the problem is finance. That is why this bank was conceived,” the minister said.
Lokpobiri noted that the Africa Energy Bank would serve about 18 APPO member countries and the wider continent, providing financing for exploration, production and energy infrastructure development.
He outlined the next steps toward full operationalisation, including shareholder meetings, the appointment of management and board members, and staff recruitment.
“Today’s ceremony is symbolic. Nigeria made a commitment and has fulfilled it,” he said.
In his remarks, APPO President Mamadou Sangafowa-Coulibaly commended Nigeria for its leadership and reaffirmed the organisation’s commitment to launching the bank within months.
“On behalf of APPO and all our members, I thank the Republic of Nigeria and the Minister of Petroleum,” he said. “As we visited this beautiful location, I said to myself: this is a critical milestone.”
He described the headquarters as well-suited for a financial institution and said it removed one of the final barriers to the bank’s launch.
“This building is very functional for a bank. We are all committed to launching this bank as soon as possible, no later than June this year, and possibly even earlier,” he said.
Sangafowa-Coulibaly added that with the headquarters and shareholders now in place, the next step would be formal approval by APPO’s General Assembly.
“To allow the bank to take off, we needed an office and shareholders. We now have them. The next step is to go to the General Assembly and formally launch the bank,” he said.
Also speaking, APPO Secretary-General Farid Ghezali said the bank would play a critical role in mobilising capital for Africa’s energy development.
“Our interest is to make finance available for our members and even beyond, so we can invest in the exploration and exploitation of our natural resources for the benefit of our people,” he said.
Ghezali also praised the partnership with Afreximbank, describing it as vital to the bank’s credibility and long-term success.
The Africa Energy Bank is a joint initiative of APPO and Afreximbank, created to bridge the financing gap for oil and gas projects across Africa at a time when global lenders are increasingly divesting from fossil fuels.
The institution is expected to fund upstream, midstream and downstream projects, support energy security and enable African countries to monetise their hydrocarbon resources responsibly.
Nigeria emerged as host country after a competitive bidding process and committed to providing the bank’s headquarters alongside other logistical and financial obligations. With the formal handover of the Abuja facility, stakeholders say the Africa Energy Bank is now firmly positioned to commence operations and reshape energy financing on the continent.
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