Another Bank Set To Commence Operation in Nigeria, Launch Date Confirmed
- All is now set for the first African bank to begin operations in Nigeria, with its headquarters located in Abuja
- Nigeria's Minister of Petroleum Resources has confirmed the launch date and believes the bank will be a game-changer
- The bank will commence with an initial funding of over $5 billion, with plans to expand its portfolio to $120 billion
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Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil) has announced that the much-awaited Africa Energy Bank will commence operations in March 2025
Lokpobiri stated this at the opening of the Sub-Saharan Africa International Petroleum Conference organised by the Petroleum Technology Association of Nigeria on Tuesday, February 12.
Source: Getty Images
The bank is expected to start with an initial investment of approximately $5 billion, sourced from member countries and the African Export-Import Bank (Afrexim Bank).
He revealed that the plan is to grow the energy bank's portfolio to $120 billion within the next four to five years.
His words:
"For Africa, the Africa Energy Bank represents a vital solution to our energy challenges. The bank is set to launch with an initial capital of $5 billion, contributed by member countries and Afrexim Bank.
"As part of the agreement, Afrexim Bank will transfer its oil and gas portfolio to the new institution. Projections indicate that within the next four to five years, the bank's assets could expand to $120 billion. We are calling on investors to support this initiative with sustainable investments, not empty promises.
"As hosts of the Africa Energy Bank, we are proud to announce that the headquarters is nearly complete. Final touches are being applied to the state-of-the-art facility, which we believe is one of the finest in Africa.
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"Our expectation remains that the bank will commence operations this quarter, with the official launch anticipated soon."
He reassured stakeholders that the bank's headquarters in Abuja, located in a newly completed state-of-the-art building, is nearing completion and will be fully operational by the end of the first quarter, Punch reports.
He explained:
"We believe that by the end of this quarter, this bank will formally take off. So you don’t need to go elsewhere to look for funding."
Nigeria calls for more energy investment
ThisDay reports that the oil minister urged local investors in the oil and gas sector to seek funding within Africa while calling on African leaders to reinvest their capital back into the continent.
His words
"Bring those funds home and invest in this sector. With 600 million Africans lacking access to electricity, industrialisation remains impossible, and without it, we cannot achieve sustainable growth. If we fail to act, the world will move forward while Africa is left behind."
"We must mobilize resources to ensure Nigerians and Africans can access energy at affordable rates. The time for collective action is now, African nations must unite to tackle our energy challenges."
He also spoke on the global push for energy transition as geopolitical rhetoric.
He noted:
"For those in the oil and gas industry, don’t hesitate. Let’s adopt the mindset of 'Drill, baby, drill,' as championed by Donald Trump. We must first address our energy poverty before engaging in discussions about transition."
CBN releases new rules for banks
Legit.ng earlier reported that the Central Bank of Nigeria (CBN) has released a new guideline for financial institutions interested in the conversion or re-categorization of their licenses.
Zenith, Access, First Bank, FCMB, Sterling and GTBare are some of the top financial institutions that have transitioned to holding companies.
Also, there are reports that many fintech companies are pushing towards becoming full-fledged digital banks, offering microfinance services.
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Source: Legit.ng
