Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Africa Energy Bank (AEB), owned by the African Petroleum Producers Organisation (APPO), has secured 44% of the minimum capital needed from oil-producing countries.

Each member country is expected to contribute about $83 million, raising $5 billion in capital for the bank's establishment.

Nigeria, Angola, and Ghana have contributed their share, representing 44% of the required take-off capital.

According to reports, AEB, which will be headquartered in Abuja, Nigeria aims at pooling financial resources required to fund big-ticket oil and gas projects across the continent to bridge funding gaps and challenges impeding the sector’s development.

APPO’s secretary general, Omar Farouk Ibrahim, said the bank seeks to fund oil and gas projects across economies in Africa, helping to bridge essential financing gaps existing via the continent’s dependence on West financiers.

NCDB’s Executive Secretary Felix Ogbe confirmed at the Nigerian Oil and Gas in Bayelsa State, saying that the agency was part of the major institutions that contributed resources to form the AEB.

He disclosed that the bank would commence operation before the end of the second quarter in 2025, stressing that AEB will make more funding available for local oil and gas projects for companies.

Also, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, disclosed at the recently held Offshore Technology Conference in Houston, Texas, that Afreximbank had already raised $19 billion for the bank’s take-off.

Lokpobiri said the $14 billion of the funds represents the AEB’s financial exposure to African oil and gas projects, with another $5 billion as take-off capital.

The Sun reports that Ogbe was appointed to APPO’s Executive Board.

Ogbe’s appointment makes him Nigeria’s representative on the 18-member board, with headquarters in Brazzaville, the Republic of Congo.

Ogbe, who doubles as the NDCDMB Governing Council Chairman, was picked by Lokpobiri.

Ogbe’s appointment was contained in a congratulatory letter by the Director of Support Services of Appo, Philomena Ikoko, on behalf of Omar Farouk Ibrahim.

She praised Ogbe for the appointment, expressing the belief that he would contribute immensely to the organisation.

Legit.ng earlier reported that 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 would 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.

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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Source: Legit.ng