APPO urges govt to fulfill obligations to $5bn energy bank

Onwubuke Melvin
Onwubuke Melvin

The African Petroleum Producers’ Organisation has asked member countries to meet their financial responsibilities to establish the $5 billion Africa Energy Bank.

Last Monday, Nigeria secured the hosting rights for the Africa Energy Bank, which would be based in Abuja, the country’s capital, according to The Punch.

To secure the bank’s operationalisation, APPO Secretary-General Dr. Umar Ibrahim has called on African oil-producing member countries to contribute $83 million in subscription fees, with the bank set to operate in September 2024.

He made this appeal during the 18th ordinary meeting of the APPO executive board in Brazzaville, Republic of Congo, where APPO’s headquarters is situated, according to a statement issued in Abuja on Wednesday by the Permanent Secretary, Federal Ministry of Petroleum Resources, Ambassador Nicholas Ella.

Ella led the Nigerian team to the executive board meeting in Brazzaville, where Ibrahim confirmed the APPO Council of Ministers’ resolution to confer Africa Energy Bank hosting rights on Nigeria.

“We are aligned with the resolutions of the APPO Council of Ministers from last week. We will double our efforts to ensure we gather the necessary funds to initiate the Africa Energy Bank,” Ibrahim reportedly stated.

He added that the oil-producing member countries had formally contacted the Nigerian government to explore expedited steps to establish the bank.

“On Friday, July 5, 2024, we formally wrote to the Federal Republic of Nigeria. We will discuss how quickly the bank building will be ready and the host country agreement prepared for signature. We already have one member country that has signed the establishment agreement; we need one more signature to proceed,” Ibrahim noted.

Ella expressed President Bola Tinubu’s appreciation to member states for their consistent support and confidence in Nigeria’s quest to host the Africa Energy Bank and reaffirmed Nigeria’s commitment to the continental bloc’s principles of improving energy security in Africa.

“The gathering of the 18 member countries of APPO in Brazzaville demonstrates our collective dedication to fostering unity, cooperation, and sustainable development within the African energy sector,” he stated.

He pledged Nigeria’s determination to collaborate with other members to address the financial needs of Africa’s energy sector through funding oil and gas projects and urged member countries to “harness the collective strength of our nations to build a brighter, more prosperous future for Africa.”

Ella further said, “Together, we will create an institution that addresses the financial needs of our energy projects and champions sustainable development, environmental stewardship, and economic inclusivity across Africa.”

Share this Article
Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *