FG Excited: New Bank to Open by September in Nigeria, Location Confirmed
- The African Petroleum Producers Organization (APPO) is set to establish the Africa Energy Bank (AEB)
- The bank headquarters will be in Abuja, and it is projected by Nigeria's minister to begin operation in September
- The new bank will provide funds for African energy projects, including emerging oil and gas projects across the continent
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.
The Nigerian government has 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.
Source: Getty Images
Africa Energy Bank (AEB) was a jointly established African intergovernmental organisation, the African Petroleum Producers Organization (APPO), and a multilateral development finance institution, the African Export-Import Bank (Afreximbank).
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With a substantial capital of $5 billion, the bank will serve as a crucial funding mechanism for energy projects across the continent, aiming to drive economic growth and bolster energy security.
Nigeria emerged as the bank's host nation, triumphing over competitors such as Ghana, Benin, Algeria, South Africa, and Côte d'Ivoire.
FG is excited about the new bank
Minister Lokpobiri, during a meeting with Omar Farouk Ibrahim, Secretary General of the African Petroleum Producers Organisation (APPO), expressed Nigeria's commitment to fulfilling its hosting obligations.
“We want to state very emphatically that Nigeria is committed to meeting our obligations as a host country. We are preparing and working day and night to ensure that we meet the end-of-September deadline.”
He reassured that even if the exact deadline is not met, the preparatory work will be sufficiently advanced to commence operations.
He revealed that the primary issues include finalising the host country agreement, completing the headquarters building, and addressing the balance of the subscription funds.
Lokpobiri emphasised that these components are being vigorously addressed to ensure the bank's timely launch.
Umar Farouk Ibrahim, APPO Secretary General, urged the Nigerian government to keep its promises to secure the hosting rights.
Ibrahim noted:
“Everybody is looking up to Nigeria. Ministers of other countries are asking me, ‘When are you moving? When are we starting?’”
He reiterated that the key issues of the host country agreement, headquarters preparation, and funding are critical for the bank's successful initiation.
“Nigeria won fair and square and the country cannot afford to fail those who voted for it.”
Fidelity targets five banks across Africa
In another report, Fidelity Bank was considering the acquisition of five commercial banks across the continent.
The move came on the heels of the bank's recent acquisition in the United Kingdom.
Fidelity is currently the sixth-largest lender in Nigeria, with assets worth almost N4 trillion.
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Source: Legit.ng
