President Bola Tinubu has approved a $100 million investment for class A shares in the proposed African Energy Bank.
Announcing this in a statement signed, on Friday by the Permanent Secretary, Federal Ministry of Petroleum Resources, Nicholas Ella, the ministry said, “President Bola Tinubu has approved a $100m investment from four agencies of the Ministry of Petroleum Resources, exceeding the minimum equity requirement of $83.33m for class A shares.
“This decision positions Nigeria favorably to win the bid, potentially reshaping the country’s oil and gas ecosystem.”
The ministry further stated that the technical inspection team from the African Petroleum Producers Organisation, and Afrexim Bank – the joint promoters for the establishment of the African Energy Bank, completed their mission to validate Nigeria’s readiness to host the headquarters of the bank, set to be established in July 2024.
Following the first bidding round in early 2024, Nigeria, Ghana, Benin, and Algeria were pre-qualified to proceed to the final round of bidding.
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These countries will compete for the right to host the supranational multilateral $5bn Africa Energy Bank.
This investment is a strategic move to position Nigeria as a strong contender to host the multilateral $5 billion Africa Energy Bank, which will play a crucial role in financing Africa’s hydrocarbon deposits and supporting energy transition and net zero 2060 commitments.
The approval, exceeding the minimum equity requirement of $83.33 million for class A shares, demonstrates Nigeria’s commitment to securing a favorable position in the bid.
This decision has the potential to reshape the country’s oil and gas ecosystem, underscoring the significance of this investment in Nigeria’s energy landscape.
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