•Appoints Ogbe APPO board member
By Adewale Sanyaolu
The Africa Energy Bank, an initiative of the African Petroleum Producers Organisation (APPO), has secured 44 per cent of the minimum capital that is required from oil-producing countries on the continent.
Each APPO member country is expected to raise $83 million with an objective of raising $5 billion in capital for the establishment of the Bank. Nigeria, Angola, and Ghana, it was learnt, have contributed their share capital, which represents 44 per cent.
The Africa Energy Bank, which APPO is setting up in Abuja, is aimed at pooling financial resources needed to fund big-ticket oil and gas projects across the continent and bridge funding challenges currently impeding the development of the sector.
According to the APPO Secretary General, Mr. Omar Farouk Ibrahim, the Africa Energy Bank seeks to fund oil and gas projects across economies in Africa, helping to plug critical financing gaps that exist through the continent’s overreliance on financiers from the West.
At the Nigerian Oil and Gas Opportunity Fair (NOGOF) held last week in Yenagoa, Bayelsa State, NCDMB’s Executive Secretary, Mr. Felix Ogbe, confirmed that the agency was part of key institutions that pooled resources for the formation of the Africa Energy Bank. He announced that the Bank will open for business before the end of the second quarter in 2025, expressing hope that it will create more funding availability for local oil and gas projects and companies.
Similarly, the Minister of State for Petroleum Resources (Oil), Mr. Heineken Lokpobiri, stated at the Offshore Technology Conference (OTC) in Houston, Texas, that Afreximbank has already raised $19 billion for the take-off of the Africa Energy Bank. $14 billion out of the funds represents the Bank’s financial exposure on African oil and gas projects, with the additional $5 billion as take-off capital.
Meanwhile, Ogbe has been appointed to the Executive Board of APPO.
By the appointment, Ogbe becomes Nigeria’s representative on the Board of the 18-member continental body, which has its headquarters in Brazzaville, Republic of the Congo.
Ogbe was picked for this role by Lokpobiri, who doubles as the Chairman of the NCDMB Governing Council.
The notice of the Executive Secretary’s appointment was conveyed in a congratulatory letter signed by the Director of Support Services, APPO, Mrs. Philomena Ikoko, on behalf of the Secretary General of the organisation, Dr. Omar Farouk Ibrahim.
She applauded the NCDMB boss on the confidence reposed in him by the Minister, expressing her belief that he would make immense contributions to the development of the African oil and gas industry.
She stated that Ogbe is joining the Executive Board of APPO at a challenging time for the oil and gas industry, especially in Africa. “Your appointment is a major call to duty for Nigeria and the continent. The Secretariat will give you the support you will need to make a success of your assignment,” she promised.
NCDMB played key roles in catalysing the operations of APPO and the development of local content on the African continent, providing institutional support and mentorship to several oil-producing countries in their formulation of local content policies.
NCDMB initiated the African Local Content Roundtable (ALCR) and hosted the inaugural edition at Yenagoa, Bayelsa State, in June 2021, which was attended by key officials of APPO and other oil industry players.
The idea for the Africa Energy Bank (AEB) was mooted by NCDMB officials at the event as one of the strategies that would accelerate the growth of the African oil and gas industry and deepen local content.
The Board also collaborated with APPO to host subsequent editions of the African Local Content Roundtable (ALCR), including the 2023 edition held in Abuja.