FG Pledges Additional Funding to Support Launch of Africa Energy Bank
Abuja, Nigeria — The Federal Government of Nigeria has committed additional funding to accelerate the launch of the Africa Energy Bank (AEB), a new pan-African financial institution aimed at bridging the continent’s energy financing gap and supporting critical projects across the energy value chain.
Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, disclosed the government’s position, stating that Nigeria is prepared to increase its financial contribution to ensure the bank becomes operational as planned. The move is intended to offset delays in capital subscriptions from some member countries and sustain momentum toward the bank’s formal commencement.
The Africa Energy Bank, an initiative of the African Petroleum Producers Organisation (APPO) in partnership with Afreximbank, is designed to mobilise long-term financing for energy infrastructure and investments. The institution is expected to play a strategic role in funding oil and gas developments, midstream and downstream facilities, as well as broader energy projects, including those aligned with Africa’s evolving energy transition objectives.
Officials say the bank will help address persistent funding constraints facing African energy markets, particularly as many international lenders scale back investments in traditional hydrocarbon projects. By providing Africa-focused capital and risk-mitigation mechanisms, the AEB is positioned to unlock projects that struggle to secure financing through conventional channels.
Nigeria, which will host the bank’s headquarters in Abuja, has reaffirmed its commitment to the initiative, describing the institution as vital for energy security, industrial growth, and economic development across the continent. The government has already delivered the bank’s headquarters facility, marking a key milestone ahead of full operations.
Industry stakeholders view Nigeria’s additional funding pledge as a significant boost to the project, reinforcing confidence in the bank’s viability and long-term impact. Analysts note that a functional Africa Energy Bank could strengthen regional energy cooperation, stimulate infrastructure expansion, and enhance access to capital for both public and private sector energy investments.
Final arrangements are ongoing among participating countries and partners to complete outstanding capital contributions and governance frameworks necessary for the bank’s launch. Once operational, the AEB is expected to channel billions of dollars into priority energy projects across Africa.
