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), 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, optimise 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.
“Beyond hydrocarbons, Ghana is modernising infrastructure, expanding energy access and diversifying into renewables to strengthen long-term energy security,” the statement added.
Amid these developments, the chamber stated that the establishment of the AEB was a strategic response to Africa’s need for dedicated financial institutions that understand the continent’s unique energy landscape.
By providing tailored financing solutions, it maintained that the bank was poised to accelerate energy project development, enhance energy security and drive economic growth.
The chamber added that as more countries contribute their capital shares, the bank was expected to play a pivotal role in unlocking investment, bridging financing gaps and ensuring sustainable energy expansion across Africa.
Meanwhile, the federal government has called on International Oil Companies (IOCs) operating in Nigeria to ramp up investments in the country’s oil and gas sector, emphasising that the administration of President Bola Tinubu has provided every necessary incentive to ensure seamless and profitable operations.
The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, made this statement at the Cross Industry Group (CIG) meeting held in Florence, Italy, organised by IOCs operating in Nigeria
The meeting, a statement in Abuja signed by the Special Adviser, Media and Communication to the minister, Nneamaka Okafor, focused on challenges, expectations, and strategies to enhance the sector’s contributions to domestic energy needs and regional expansion across Sub-Saharan Africa.
Speaking at the event, Lokpobiri noted that while the IOCs have pointed to Engineering, Procurement, and Construction (EPC) contractors as a challenge, EPCs will only commit when they see strong investment decisions from industry players.
He said: “The government has done its part by providing the requisite and investment-friendly fiscal policies, including the president’s Executive Order incentivising deepwater investments. Now, the ball is in the court of the IOCs and other operators to make strategic investment decisions that will drive increased production and sustainability in the sector.”
In addition, Lokpobiri emphasised the need for IOCs to support local refining efforts, noting that more refineries are coming on stream and will require a steady supply of crude oil.
To make this easy and possible, he stressed that ramping up production will enable Nigeria to meet both local and international obligations.
In line with the federal government’s drive to boost production, Lokpobiri reiterated that the federal government will begin implementing the “drill or drop” provisions of the Petroleum Industry Act (PIA) where necessary.
“We cannot continue to have assets sitting idle for 20 to 30 years without development. If you are not utilising an asset and it remains underdeveloped for decades, it neither adds value to your books nor to us as a country.
“We encourage industry players to explore collaborative measures such as shared resources for contiguous assets, farm-outs, and the release of underutilised assets to operators ready to invest in production. Otherwise, like any responsible government, we will take back these assets and allocate them to those willing to go to work,” he said.
The minister also urged operators to consider farm-out agreements where assets are close to existing infrastructure, rather than incurring high costs on new Floating Production Storage and Offloading (FPSO) units.
According to him, the federal government remains committed to ensuring a thriving oil and gas industry and expects operators to match its commitment by making tangible investment decisions that will drive growth, sustainability, and national energy security.
In his remarks, the Chairman of the Oil Producers Trade Section (OPTS), Mr. Osagie Okunbor, commended the minister for his direct engagement with industry players and for the federal government’s continued efforts in advancing the sector.
“We appreciate the government’s commitment to creating a conducive environment for investment. The minister’s engagement has provided critical insights and has also challenged us as industry players to step up efforts to increase production,” Okunbor stated.
