JUST IN: Ghana, South Africa, Others Oppose as Nigeria Eyes $5bn African Energy Bank

Ghana, South Africa, Others Oppose as Nigeria Eyes $5bn African Energy Bank

Henzodaily.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the stock market.

As oil-producing nations prepare to make a decisive choice regarding the establishment of Africa's inaugural energy , backed by an initial investment of $5 billion, dissent against 's has intensified.

A coalition comprising Ghana, Egypt, , Benin Republic, Cote d'Ivoire, and Algeria has emerged in staunch opposition to Nigeria's bid to host the financial institution.

The idea of establishing an African energy bank was conceived by the APPO in collaboration with the Afrexim Bank.
credit – Chemical Engineering, StateHouse
Source: UGC

These nations have engaged in vigorous lobbying among influential stakeholders tasked with determining the bank's headquarters location.

Henzodaily.ng earlier reported that through the Economic Community of West African States (ECOWAS), the plans to boost oil production through the energy bank.

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African Energy Bank initiative

The idea of establishing an African energy bank was conceived by the African Petroleum Producers Organization (APPO) in collaboration with the African Export-Import Bank.

This new institution is regarded as crucial for advancing the African energy sector, as it is anticipated to offer funding for projects that international lenders overlook due to concerns associated with the energy transition.

According to ThisDay, the competition among the nations involved in the bank's siting has sparked significant controversy, amplifying the number of participating countries involved in the deliberations.

In addition to the mentioned nations, other countries participating in the decision-making process at the end of this month include Angola, Cameroon, the Republic of Congo, Democratic Republic of Congo, Equatorial Guinea, Libya, Niger Republic, and Senegal, with Venezuela holding an honorary membership.

In the foreseeable future, the establishment of the bank is anticipated to hold significant importance for the sustainability of Nigeria's oil and gas sector and other oil-producing countries in Africa, particularly as Western nations increasingly divest from fossil funding.

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Headquarter nation to be picked in March

APPO, led by Nigeria's Farouk Ibrahim, has recently announced that a final decision on the organization's headquarters will be reached by the end of March.

This underscores the significance of the funding gap in the sector despite the presence of International Oil Companies (IOCs) in Nigeria, indicating a significant underfunding issue within the country's industry.

Condition for preferred headquarter-nation

APPO has outlined specific conditions that any interested country must meet before the headquarters of the energy bank can be established anywhere on the continent.

These conditions include air accessibility from any country, availability of essential amenities such as hospitals and educational institutions, adherence to the establishment agreement and charter of the bank, provision of a suitable proposed headquarters, and fulfilment of financial obligations.

Despite a leading APPO, it's understood that their influence over the process is limited, as confirmed by Ibrahim, who recently expressed his neutrality until the end of his tenure.

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Source: Henzodaily.ng

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