African Energy Bank to Launch in Q1 2025 with $5 Billion – Lokpobiri
Senator Heineken Lokpobiri, Nigeria’s Minister of State for Petroleum Resources (Oil), has announced that the African Energy Bank (AEB) is set to begin operations in the first quarter of 2025. The bank will launch with an initial capitalization of $5 billion, with plans for significant growth, aiming to reach $20 billion in the near future.
Lokpobiri shared this update during his speech at the Sub Saharan Africa International Petroleum Exhibition and Convention (SAIPEC) yesterday, highlighting Nigeria’s progress in advancing local content since the implementation of the Local Content Act in 2010. He called for African nations to further enhance their local capabilities, especially as many international service companies are scaling back operations on the continent.
The Minister also addressed what he described as the “hypocrisy of the global north,” accusing developed countries of advocating for production cuts in Africa while continuing to expand their own fossil fuel consumption. He pointed out that Africa contributes only a small share to global emissions compared to major polluters such as the United States and the United Kingdom.
Locating Nigeria’s role as a leader in Africa’s oil and gas industry, Lokpobiri emphasized the need for greater local participation in energy security. He warned against repeating the past reliance on foreign service providers and reassured that newly acquired oil assets in the country are being managed by competent local operators despite international divestments.
To foster greater collaboration across the continent, the Minister proposed the creation of a peer-review system among African nations to facilitate knowledge exchange and avoid the challenges that previously stunted Nigeria’s energy sector growth. He described the launch of the African Energy Bank as a vital move towards energy independence, revealing that Nigeria is prepared to host the bank’s headquarters.
Lokpobiri encouraged African governments to commit funding to the bank, which is intended to serve as the financial backbone for the continent’s energy and industrial development. “The African Energy Bank will offer sustainable financing for Africa’s energy needs, ensuring we take charge of our resources and our future,” he said.
Along with financial support, the Minister stressed the importance of innovation in securing the continent’s energy future. He announced that Nigeria is working alongside UK institutions to develop a specialized university program aimed at training local PhD students in energy-related fields.
In addition, Lokpobiri urged African stakeholders to invest in carbon capture technologies to reduce emissions while maintaining production, calling out the global north for insufficient efforts in this area. He also emphasized the need for a stable and transparent regulatory environment to attract sustained global investment and proposed dedicating specific reservoirs for condensate production to meet local needs and cut reliance on imports.
Concluding his remarks, Lokpobiri called on African leaders to prioritize self-reliance and development, stressing the importance of unity in achieving energy security across the continent. “Africa must come together to chart its own course in energy development. We cannot continue to be at the mercy of external forces. The time to invest in ourselves is now,” he urged.
