In a significant development for Africa’s energy landscape, the African Export-Import Bank (Afreximbank) has revealed that Nigeria stands as one of the largest beneficiaries, securing approximately 60 per cent of its $30 billion funding allocated to the continent’s energy sector.
Speaking at the 7th Nigeria International Energy Summit (NIES 2024) in Abuja, Prof. Benedict Oramah, President of Afreximbank, highlighted Nigeria’s pivotal role in the bank’s energy financing endeavors.
Oramah addressed attendees on the theme: “Sustainable Strategies for Energy Leadership: Navigating Security, Transition and Finance in a Changing World.”
“The support provided to the sector by Afreximbank exceeds $30 billion. Nigeria has been one of the largest beneficiaries, accounting for almost 60 per cent of the total funding allocated to the sector,” stated Prof. Oramah.
Acknowledging Africa’s energy infrastructure deficit, Oramah, represented by Haytham Eimaayergi, Executive Vice President at Global Trade Bank (GTBA), emphasised the continent’s potential to leapfrog traditional energy systems and embrace more efficient renewable energy solutions.
Furthermore, he noted the impact of reduced international bank support on oil and gas exploration and production, emphasising the need for adequate funding resources under African control.
“Our aspirations for energy security and transition remain aspirations unless we have access to sufficient funding resources that we control,” Oramah emphasised.
He elaborated on Afreximbank’s commitment to establishing the Africa Energy Bank, aiming to shape the continent’s energy landscape through strategic partnerships with African and international financial institutions and investors. The Bank will focus on providing sustainable financing for the oil and gas sector.
In related developments, Oramah disclosed that Afreximbank and the Africa Petroleum Producer Organisation (APPO) are in the final stages of establishing the Africa Energy Bank under a multilateral financial institution agreement.
Secretary- general of APPO,Dr. Omar Ibrahim, announced that the decision on the bank’s location, among seven candidate countries including Nigeria, Algeria, Egypt, Ghana, South Africa, Benin Republic, and Cote d’Ivoire, would be made by the end of the first quarter of 2024.
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