Nigeria on Monday officially transferred the fully equipped headquarters of the Africa Energy Bank to the Association of African Petroleum Producing Countries, a significant step toward mobilising sustainable funding for oil and gas projects across Africa.

The handover, held in Abuja, was led by the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, alongside APPO President Mamadou Sangafowa-Coulibaly, who also serves as Côte d’Ivoire’s Minister of Mines, Petroleum and Energy.

The event was attended by senior APPO officials and representatives of Afreximbank, the bank’s financial partner.

The Africa Energy Bank is now located on the third floor of the newly completed Afreximbank African Trade Centre, strategically situated in Abuja’s Central Area.

At the ceremony, Minister Lokpobiri stated that the completion and handover of the headquarters fulfilled Nigeria’s obligations as the host country, emphasizing that the Federal Government is committed to ensuring the bank begins operations by June 2026.

“Today, we are formally here to report to you, as President of APPO, that Nigeria has met all our commitments. The last commitment was the bank headquarters. Mr President, once again, I welcome you, and we are formally handing over this furnished African Energy Bank to APPO and Afreximbank. Nigeria is very happy today because this represents the fulfilment of our commitment,” the minister said.

He explained that Nigeria had considered several options before selecting the current facility, which he described as fully paid for by the Federal Government and fit for purpose.

“This is about the third building. The first one was too big, the second one had location issues, and eventually, we are happy that we got this one. It is furnished, paid for, and Nigeria is formally handing it over today,” Lokpobiri stated.

The minister emphasized that all previous delays hindering the bank’s launch had been resolved, noting that the institution holds strategic significance for Africa’s energy future.

“Earlier, we said the bank needed to take off by the end of April. All the issues that delayed it have now been sorted out, including this building. Nigeria is committed to doing everything necessary for the bank to take off because of its strategic importance to oil and gas investment in Africa,” he said.

Lokpobiri noted that the Africa Energy Bank was established to address the continent’s longstanding challenge of securing affordable financing for fossil fuel projects, especially amid growing global pressure against hydrocarbon investments.

“Africa’s biggest challenge is finance. The Global North is using finance as a weapon against the developing South, particularly Africa. We are victims of global emissions, yet we are told to stop exploiting our God-given resources,” he said.

He stated that recent global developments have validated Africa’s long-standing stance on the energy transition.

“Thank God those who once campaigned against fossil fuels are now talking about the energy mix. Even the International Energy Agency has admitted that the world needs up to $700bn in fossil fuel investment every year for the next 25 years, otherwise we face a global energy crisis,” Lokpobiri noted.

He added that fossil fuels are expected to remain dominant for decades, even as Africa continues to face challenges of energy poverty.

APPO Secretary-General Farid Ghezali stated that the bank will play a key role in mobilising capital for Africa’s resource development.

“Our interest is to make finance available for our members and even beyond, so we can invest in the exploration and exploitation of our natural resources for the benefit of our people,” he said.

Ghezali commended the partnership with Afreximbank, describing it as essential to the bank’s credibility and success.

The Africa Energy Bank, a joint initiative of APPO and Afreximbank, was established to bridge the growing financing gap for oil and gas projects in Africa amid global divestment from fossil fuels.

The bank is expected to finance upstream, midstream, and downstream projects, bolster energy security, and assist African countries in responsibly monetising their hydrocarbon resources.