Energy Bank: Oil Producing Countries Brainstorm On Modalities, Financial Obligations

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The African Petroleum Producers’ Organisation (APPO), has urged member countries to fulfill their financial obligations towards establishing the Africa Energy Bank.

To ensure the bank’s operationalisation, APPO Secretary-General Dr Umar Ibrahim urged African oil-producing member countries to contribute their subscription fees of 83 million dollars,

According to him, the bank will be inaugurated in September.

The News Agency of Nigeria (NAN) recalls that Nigeria had on July 4, secured the hosting rights for the Africa Energy Bank, which will be located in Abuja.

Ibrahim spoke at the 18th ordinary meeting of the APPO executive board in Brazzaville, Republic of Congo, where APPO’s headquarters is situated.

The Nigerian delegation was led by the Permanent Secretary of the Ministry of Petroleum Resources, Amb. Nicholas Ella.

In a statement issued by Ella on Wednesday, Ibrahim reaffirmed APPO council of ministers’ resolution to confer the hosting rights of the Africa Energy Bank on Nigeria.

“We are aligned with the resolutions of APPO council of ministers from last week. We will double our efforts to ensure we gather the necessary funds to initiate the Africa Energy Bank,” Ibrahim said.

According to him, the oil producing member countries have formally written to the Nigerian government to discuss expedited steps to establish the bank.

“On July 5, we formally wrote to the Federal Republic of Nigeria. We will discuss how quickly the bank building will be ready and the host country agreement prepared for signature.

“We already have one member country that has signed the establishment agreement; we need one more signature to proceed,’’ Ibrahim said.

The permanent secretary while reiterating Nigeria’s commitment to the continental bloc’s ideals to enhance energy security, expressed President Bola Tinubu’s gratitude to the member states’ unwavering support and confidence in Nigeria’s bid to host the Bank.

“The gathering of the 18-member countries of APPO in Brazzaville demonstrates our collective dedication to fostering unity, cooperation, and sustainable development within the African energy sector,’’ Ella said.

He pledged Nigeria’s determination to collaborate with other members to address the financial needs of Africa’s energy sector through funding oil and gas projects.

Ella urged member countries to harness the collective strength of our nations to build a brighter, more prosperous future for Africa.

“Together, we will create an institution that addresses the financial needs of our energy projects and champion sustainable development, environmental stewardship, and economic inclusivity across Africa.’’

Dr Ibe Kachikwu, a former Nigerian Minister of State for Petroleum Resources, suggested a ten-year plan for the energy industry to encourage an “open era” for investment and advised APPO to grow the bank’s capital base before investing.

During a brainstorming session on the continent’s energy future, Algerian executive board member Remini Amine said that local content, manpower, and infrastructure development are key to unlocking Africa’s energy opportunities.

APPO member state representatives agreed that the Africa Energy Bank would bridge funding gaps in the sector.

The Africa Energy Bank is an initiative of the African Petroleum Producers Organisation and Afreximbank. (NAN)

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