In a significant development for Africa’s energy sector, Nigeria, Angola and Ghana have fulfilled their capital commitments toward establishing the Africa Energy Bank (AEB).
The bank is a critical financial institution aimed at bridging the funding gap in the continent’s oil and gas industry.
The milestone represents 44 per cent of the minimum required funding from African Petroleum Producers Organisation (APPO) members to initiate the bank’s operations.
Secretary General of APPO, Dr. Omar Farouk Ibrahim, announced this progress during the just-concluded Congo Energy & Investment Forum, according to a statement by the African Energy Chamber (AEC).
The AEB, with initial capitalisation of $5 billion, aims to finance oil and gas projects across the continent, 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, the Chamber stated.
Nigeria remains sub-Saharan Africa’s largest oil producer, offering significant opportunities in the oil and gas sector, including a 2025 bid round, the chamber noted.
It said the implementation of the PIA has introduced regulatory reforms to enhance transparency and attract investment, driving major projects forward.
It recalled that recent Final Investment Decisions (FIDs) in Nigeria included the TotalEnergies’ $550 million Ubeta Gas Field Development and Shell’s $5 billion Bonga North Project, adding that yet, additional financing is crucial to advancing Nigeria’s gas agenda and unlocking its full potential in the energy transition.
The chamber mentioned that Angola, meanwhile, was actively diversifying its energy portfolio while advancing major deepwater developments, including TotalEnergies’ $6 billion Kaminho Deepwater Project, Eni’s Agogo Integrated West Hub and a limited public tender, with a long-term goal of increasing production to 2 million barrels per day.
“The country plans to make an FID on its first green hydrogen project by 2025 – a 600 MW development led by Sonangol in collaboration with international partners.
“Additionally, Angola is spearheading its first non-associated gas project, the New Gas Consortium, and undertaking a $12 billion expansion of the Angola LNG plant to enhance its gas monetisation efforts.
“Ghana is strengthening its position as a leading oil and gas player with new commitments from Eni and Tullow Oil. In March, Eni and the Ghana National Petroleum Corporation signed an agreement to enhance offshore exploration, optimize existing assets and advance untapped reserves.
“This follows recent regulatory reforms aimed at improving fiscal terms, transparency and investment incentives.
“Tullow Oil also remains integral to Ghana’s energy sector, with production from the Jubilee and TEN fields supporting economic growth and plans to launch a drilling program in May 2025 to bring new production online.
