Nigeria, the main oil, gas and LNG producer in sub-Saharan Africa, has been chosen to host the newly formed Africa Energy Bank (AEB) to boost investment in the Continent’s under-financed projects.
Nigeria was chosen over three rival bids to host the bank after a decision by an extraordinary meeting of the Council of Ministers of the African Petroleum Producers Organization (APPO). The three other countries that competed to host the AEB were Algeria, Benin and Ghana.
Nigeria’s bid to host the AEB was strengthened in late May after it ratified the bank’s charter and Nigerian President Bola Tinubu approved a $100-million investment to the bank, more than the required $83M from member states.
Hydrocarbons focus
The hydrocarbons-focused AEB investment fund is a partnership between Afrexim Bank and APPO and aims to finance energy projects on the Continent while also supporting energy transition goals.
“The African Energy Bank will be instrumental in providing the necessary financial backbone for energy projects that will drive growth and development across the Continent,” said a statement.
The AEB will initially have $5-billion to spend when it is formally launched later in 2024.
Many African nations are moving forward in 2024 with natural gas projects, LNG import infrastructure and supply deals.
These include large investments backed by some majors in ventures in countries like Nigeria, Morocco, Algeria, Mozambique, Tanzania, Mauritania and Senegal.
Nigeria itself owns that Nigeria LNG plant at Bonny Island in the Niger Delta, which is aiming for expansion with production set to increase to 30 MTPA.
The Nigerian LNG plant has been in production since 1999 and the shareholders are Nigeria National Petroleum Corp (NNPC) with 49 percent, Shell with 25.6 percent, TotalEnergies with 15 percent and Italy’s Eni with 10.4 percent.
