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Afreximbank Commits $19 Billion to Launch African Energy Bank
The African Export-Import Bank (Afreximbank) would fund the African Energy Bank (AEB) with $19 billion.
The Minister of State for Petroleum (Oil), Heineken Lokpobiri, disclosed this while opening the Nigerian pavilion at the ongoing Offshore Technology Conference (OTC) 2025 in Houston, Texas, USA.
According to the Minister, Afreximbank committed $14 billion in financial exposure and contributed an additional $5 billion as take-off capital.
The Africa Energy Bank plans to commence operation during the second half of 2025, with its head office in Abuja, Nigeria.
What Is the African Energy Bank
In June 2024, the African Export-Import Bank (Afreximbank) and the Africa Petroleum Producers’ Organisation (APPO) signed the Establishment Agreement to establish the Africa Energy Bank.
The AEB was established to address the funding crisis in the African oil and gas industry, triggered by the global energy transition.
Several traditional upstream and Midstream financiers, European banks, on whom Africa has depended for decades, are withdrawing support, citing pressure from Western politicians.
Africa holds around 7% and 13% of the world’s oil and gas reserves. However, it has the world’s lowest per capita energy use.
Although renewables could play a prominent role in Africa’s energy supply in future, African governments say they need fossil fuels for baseload power generation and industrial development.
Consequently, to unlock its growth and development strategy, Africa needs to construct oil and gas pipelines, liquefied natural gas (LNG) terminals, distribution hubs, and gas-fired power plants within the next three decades.
However, international banks are exiting fossil fuel lending, leaving Africa vulnerable. Therefore, AEB aims to fund large-scale energy infrastructure projects across Africa.
| Feature | Details |
| Purpose | Finance Africa’s energy development, including fossil fuels & renewables |
| Head Office | Abuja |
| Founding Partners | Afreximbank, African Petroleum Producers Organization (APPO), African states |
| Initial Capital Base | Estimated at $5 billion, with Afreximbank pledging up to $19 Billion. Aims to grow its capital base to $120 billion by 2030 |
| Focus Areas | Energy infrastructure, oil & gas production, renewable energy, power transmission |
| Target Beneficiaries | African countries, state energy firms, private developers |
| Strategic Goal | Support energy security and industrialization across Africa |
Impact on Nigeria
Nigeria is Africa’s largest oil producer. The AEB’s head office will be in Abuja, the country’s capital. Nigeria has contributed $100 million to grow the bank’s capital base. As a result, the country stands to benefit significantly from the AEB’s funding capabilities.
Bashir Ojulari, the new NNPC GCEO, presented a roadmap on April 19 to revive Nigeria’s oil and gas sector.
For instance, regarding the gas, the plan is to boost production to 10 billion cubic feet (bcf) per day by 2027 and 12 bcf per day by 2030. Ojulari would advance gas pipelines and infrastructure projects, including the OB-3 and AKK gas pipelines, to boost domestic gas usage.
With limited fiscal space, Nigeria needs funding for several gas projects. Key projects include:
- Ajaokuta–Kaduna–Kano ($2.8 billion): This pipeline transports gas from southern Nigeria to northern Nigeria.
- Obiafu–Obrikom–Oben ($700 million): East-West pipeline to move gas from the Eastern to the Western network.
- Trans-Saharan Gas Pipeline ($10 billion): A planned pipeline to export Nigerian gas to Europe via Niger and Algeria.
- Ogidigben Gas Industrial Park ($20 billion): A proposed Industrial park in Delta State that will produce fertilizers, methanol, and petrochemicals.
With Western banks increasingly declining to fund oil and gas projects, the Africa Energy Bank aims to fill this void. It will provide the necessary financial assistance to develop Nigeria’s vast oil and gas reserves in Africa.