April 17, 2024
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OIL & GAS

Nigeria secures 60% of Afreximbank Energy Sector Funds

At the ongoing 7th Nigeria International Energy Summit (NIES 2024) in Abuja, the African Export-Import Bank (Afreximbank) revealed that Nigeria stands as one of the largest beneficiaries, securing approximately 60% of its US$30 billion energy sector funding across Africa.

Prof. Benedict Oramah, President of Afreximbank, emphasized the institution’s significant contributions to the oil and gas sector, driven by its African ownership and control.

Speaking on “Sustainable Strategies for Energy Leadership,” Oramah highlighted the continent’s need for substantial funding to navigate energy security and transition challenges effectively.

“The support provided to the sector by Afreximbank is in excess of US$30 billion. Nigeria has been one of the largest beneficiaries accounting for almost 60 per cent of the total funding of the sector.”

With traditional energy infrastructure lacking, Oramah, represented by Haytham Eimaayergi, Executive Vice President, Global Trade Bank (GTBA), noted the opportunity for Africa to leapfrog to renewable technologies efficiently.

According to him, “our aspiration in the area of energy security and energy transition will remain aspiration unless we have access to adequate funding resources that we control.”

As international banks withdraw from oil and gas funding, Afreximbank has emerged as a major financier, facilitating exploration and production deals across the continent.

A key development highlighted by Oramah is the establishment of the African Energy Bank, in collaboration with the Africa Petroleum Producer Organisation (APPO).

Structured under a multilateral financial institution agreement, the bank aims to provide sustainable financing for the continent’s energy sector while ensuring African ownership and control.

The Africa Energy Bank is strategically positioned to shape Africa’s energy landscape through partnerships with African and international financial institutions. Oramah emphasized the need for member state support to achieve adequate capitalization for the bank to effectively support the energy sector.

Dr. Omar Ibrahim, Secretary-General of APPO, announced that the decision on the bank’s location will be made by the end of the first quarter of 2024, with Nigeria among the competing countries.

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