New Africa Energy Bank Set to Commence Operations in Nigeria
- Nigeria will soon host a new African bank meant to support oil-producing countries on the continent
- The chief executive officer of the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA), Ahmed Farouk, disclosed this recently
- Farouk said the new Africa Energy bank will sited in Nigeria to help oil producers in Africa access funding
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Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Ahmed Farouk, the chief executive officer (CEO) of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), has hinted that the Africa Energy Bank's operations will soon begin in Nigeria.
The NMDPRA’s boss informed industry players at the opening of the 18th edition of the Oil Trading and Logistics (OTL) conference in Lagos that plans were in place to establish a continental bank to provide the necessary funding to fast-track the growth of Africa's energy supply infrastructure.
Source: Getty Images
Energy bank to assist oil-producing countries
The new Africa Energy Bank is a significant collaborative success that will assist the continent in its journey to a sustainable and equitable energy transition.
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A previous report by Legit.ng says that the 18-member African Petroleum Producers’ Organisation (OPPO) expressed optimism that the new bank can begin operations early next year.
Executive Vice President of global trade at the African Export-Import Bank, Haytham El Maayergi, disclosed the information.
The Nigerian government expressed excitement as it gears up for the anticipated launch of the African Energy Bank, set to commence operations by September 2024.
Heineken Lokpobiri, the Minister of State for Petroleum Resources, revealed that efforts are underway to establish the institution by the deadline.
Leadership reports that the continent’s oil producers have faced funding restrictions from traditional Western backers, including multilateral institutions whose rules block them from accessing oil and gas investment.
World Bank backs out of oil-funding deal
The World Bank halted financing upstream oil and gas projects in 2019, while the African Development Bank (AfDB), with the US as its second-largest shareholder, does not finance fossil fuel projects.
According to the report, Ahmed said the NMDPRA would also support developing and adopting a unified gas transportation code in West and North Africa due to the progress of the West African Gas pipeline (WAGP) to Morocco.
He disclosed that the agency will explore avenues to facilitate the establishment of an association for energy regulators in West Africa, with the potential to integrate it into the existing East African and West African regulators association.
GTBank's profit hits N1 trillion
Legit.ng earlier reported that Guaranty Trust Holding Company has reported a profit after tax of N1.08 trillion in the first nine months of 2024, mostly from interest income.
Data from the Nigerian Exchange Group (NGX) shows that the bank’s interest grew by 161% to N980 billion, relative to N374.5 billion recorded in the same period in 2023.
The rise in interest income is due to increased average earning assets and average yields.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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