The Group CEO of NNPC Ltd., Mr. Bashir Bayo Ojulari has described the floating of Africa Energy Bank as a veritable and crucial step towards ramping up the current Nigerian crude oil production level. Mr. Oulari made these frantic remarks when he received H.E. Dr. Omar Farouk Ibrahim, Secretary General of the African Petroleum Producers’ Organization (APPO), who was on a courtesy visit in his office.

The GCEO while receiving APPO secretary General, commended APPO’s focus and initiative, particularly in the establishment of the Bank, noting that it will play a critical role in providing financing to boost production in Africa upstream business with special emphasis on ramping up of the Nigeria crude production targets of over 2 million barrels per day which will be sustained through 2027 and attain 3 million by 2030.

“The initiative would support both short-term deliverables and long-term growth aspirations for the energy sector,” the Group CEO of NNPC Ltd. emphasized.

Dr. Ibrahim on felicitation remarks, shared APPO’s central vision, which is centered on financing, technology, and market access to reduce energy poverty and enhance energy access across Africa. While elaborating on the Africa Energy Bank, which will be headquartered in Nigeria, he extended an invitation to the GCEO to join the APPO Forum of CEOs of African National Oil Companies.

Still on the utmost commitment and pursuit to bring this laudable project to fruition, the Secretary General of the African Petroleum Producers’ Organization (APPO), Dr. Omar Farouk Ibrahim, was in the company of Nigeria Minister of state for Petroleum (Oil) Senator Heineken Lokpobiri recently inspected the Africa Energy Bank (AEB) building in Abuja, ahead of its anticipated commencement of operations.

Sen. Lokpobiri, disclosing the importance of this inspection tour on his former Twitter handle, now X, stated that the tour is necessary to forestall any unforeseen contingency that might delay the timely completion and subsequent commissioning of the project as scheduled. He further expressed his utmost satisfaction on the pace and level of work executed at the site thus far.

“Walking through the facility, I was quite impressed by the remarkable level of progress achieved thus far. It is particularly encouraging to observe how closely the current state of the infrastructure aligns with our set targets and timelines for operational readiness. As we move steadily towards the formal launch, this inspection reinforces my confidence that we are firmly on course to deliver a world-class institution that will serve Africa’s energy sector with distinction,” He enthused.

 The essence of creating Africa Energy Bank is to establish an African financial content in the oil, gas, and energy sector projects financing as an enabler to cushion the effect of financial assessment difficulties experienced by indigenous contractors in the execution of major oil and gas contracts, especially in the upstream sector. Nigeria, Angola, and Ghana have fulfilled their capital commitments toward establishing the Africa Energy Bank (AEB).

The milestone represents 44 per cent of the minimum required funding from African Petroleum Producers Organisation (APPO) members to initiate the bank’s operations. The bank’s headquarters will be located in Abuja, Nigeria, and the Nigerian government will contribute $100 million to its capital.

The Africa Energy Bank has projected an initial capitalisation of $5 billion as a take-off domiciliary fund to finance oil and gas projects across the continent in addressing funding challenges posed by traditional Western financial institutions’ reluctance to support fossil fuel initiatives due to environmental concerns.

APPO had requested each of its 18 member states to contribute $83 million, targeting a total initial capitalisation of $5 billion. Beyond Nigeria, Angola, and Ghana, five additional member states – Algeria, Benin, the Republic of Congo, Equatorial Guinea, and Ivory Coast – had pledged to make their payments, aligning with the bank’s goal to commence operations in the first half of 2025.