African Energy Bank to Start Operations Soon in Abuja
During a site visit of the new building of the African Energy Bank (AEB) in Abuja, Nigeria on 27 November 2025, the Nigerian Minister of State for Petroleum Resources, Senator Heineken Lokpobiri, announced that the Bank is expected to start operations soon. The African Petroleum Producers Organization SG Omar Ibrahim and Afriximbank VP Haytham el Maayergi were also in attendance.
The Bank is a joint venture between the African Petroleum Producers Organisation (APPO) and Afriximbank with an initial capitalization of USD 5 billion. Its mission is to finance oil, gas and clean energy projects across Africa. Currently, the APPO has 18 African countries represented in its membership.
“As the host country, we provided everything expected of us. The completion of the building is an indication of our strong commitment to regional energy cooperation.”
Nigeria Minister of Petroleum Resources Heineken Lokpobiri
The advent of the AEB happens at a particular period for Africa when global lenders impose tighter restrictions on fossil fuel investments. The AEB plans to step in to fill financing gaps in exploration, exploitation and refining, as well as related infrastructure such as pipelines and power plants. In line with the # #EnergyTransition, the AEB will also finance projects that contribute to cleaner energy.
According to some estimates, the financing gap for energy projects in Africa is about USD 50 billion annually. Actually, Africa receives less than 3% of the global investment in the energy sector, while 600 million Africans still do not enjoy proper #ElectricityAccess.
“The value and role of the AEB cannot be overstated. By providing accessible and tailored financing solutions, the AEB ensures that African energy projects – whether in oil, gas, or renewables – receive the support they need to thrive. This institution is not just about financing; it is about empowering Africa to unlock its vast energy potential, drive industrialization and make energy poverty a thing of the past.”
APPO SG Omar Ibrahim
Africa has proven and significant reserves of oil and gas. Cumulatively, Africa holds more than 125 billion barrels of oil and 620 trillion cubic feet of natural gas.In addition to the traditional oil and gas producers such as Nigeria, Angola, Libya, Republic of Congo, Gabon, Uganda, Africa still has many largely untapped resources in Namibia’s Orange and MSGBC Basins, Zimbabwe’s Cabora Bassa Fields, and South Africa’s Karoo Fields. The Mozambique offshore gas blocks are expected to come online soon as well.
As for the official opening, Minister Lokpobiri believed that is should occur soon as only ‘a few details’ need to be ironed out at this stage. Recently, AfDB approved a half-billion dollar loan to Nigeria to pursue energy reforms and accelerate the Energy Transition. The Dangote Group of Nigeria is leading the way for localizing the oil refining and petrochemical production on the continent.