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Nigeria beats Ghana, South Africa to host US$5bn African Energy Bank

Written by on July 5, 2024

Nigeria has been selected to host the headquarters of the newly established US$5 billion African Energy Bank (AEB).

This decision came after a thorough technical inspection by the African Petroleum Producers Organisation (APPO) and Afrexim Bank, who jointly promote the AEB.

Their assessment confirmed Nigeria’s readiness to host the bank.

Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil), made this known in a statement obtained by Advisors Reports on Thursday.

The Minister expressed his excitement about this accomplishment, highlighting that it reflects Nigeria’s leadership and dedication to the energy sector.

Lokpobiri emphasized that the AEB will provide essential financial support for energy projects, fostering growth and development across Africa.

Ambassador Nicholas Ella earlier on Wednesday at the closing ceremony of the just concluded NOG Energy Week held in Abuja affirmed that Nigeria will be declared the host of the AEB within the week.

The Permanent Secretary in a recent report published by Advisors Reports also emphasised that the Nigerian Government has identified a prestigious building in Abuja for the temporary headquarters and opened a secured data room for the technical team’s review.

He further said, “The application form for land for the permanent headquarters in the Central Business District of Abuja has been submitted for approval.

In May 2024, President Bola Ahmed Tinubu approved a $100 million investment from four key agencies under the Ministry of Petroleum Resources, surpassing the minimum equity requirement of $83.33 million for class A shares in the Supranational Multilateral $5 Billion Africa Energy Bank.

Advisors Reports gathered that Nigeria emerged as the chosen host nation over strong contenders such as Ghana, Benin, Algeria, South Africa, and Cote d’Ivoire.

This strategic victory is poised to significantly influence Nigeria’s oil and gas industry, as the AEB headquarters will mark the largest foreign direct investment in the country in over two decades.

The establishment of the AEB in Nigeria is expected to greatly enhance the nation’s GDP, create jobs, improve the financial sector, and promote economic diversification.

Additionally, it will aid in managing foreign exchange strategies.

Source: Asaase Radio

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