OTC 2025: Afreximbank to fund African Energy Bank with $19bln
In preparation for its takeoff this quarter, Afreximbank is set to fund African Energy Bank with $19 billion, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has hinted.
According to the minister, the coming up of the bank is in a bid to boost energy access and drive economic prosperity in Africa.
The minister disclosed this during the opening ceremony of the Nigerian Pavilion, hosted by the Petroleum Technology Association of Nigeria (PETAN), at the ongoing Offshore Technology Conference (OTC) in Houston, Texas, U.S.
He told the audience that the planned establishment of the African Energy Bank by the Africa Petroleum Producers Organisation (APPO) was to bridge funding gaps and ultimately free the continent from energy poverty.
'This is an opportunity to let you know that your concerns are gradually being addressed.
'As members of APPO, we are in partnership with Afrexim Bank, which during our last meeting disclosed that it has an exposure of nearly $14 billion.
'This amount, along with an additional $5 billion as the initial take-off capital, will be transferred to the African Energy Bank—bringing the total to over $19 billion,' the minister said.
He further emphasized that the African Energy Bank is scheduled to begin operations within the current quarter.
Themed: 'Africa's Energy Renaissance: Leveraging Innovation and Natural Gas for Sustainable Development', Lokpobiri, at the conference, urged African nations to forge a united front in the fight against energy poverty across the continent.
He stressed that by working together; African countries can overcome energy poverty, drive economic growth, and improve the lives of millions of people.
The minister stated that by pooling resources, African countries can invest in large-scale energy projects, reducing costs and increasing efficiency.
According to him, collaboration can facilitate the exchange of best practices, technologies, and expertise, accelerating progress in the energy sector.
Also, the minister stressed the need for Africa to develop cohesive policies that are tailored to the continent's unique circumstances, warning that fragmented approaches would be ineffective in addressing the escalating energy deficit.
'This conference is not a jamboree. It is a platform for Nigeria, and by extension, Africa—to showcase its vast potential,' Lokpobiri said.
He underscored the importance of regional collaboration, highlighting the Africa Petroleum Producers Organisation (APPO) as a strategic entity established to devise shared solutions for the continent's energy challenges.
Lokpobiri also expressed his approval of Donald Trump's return as President of U.S., suggesting it could help decelerate what he termed the 'hypocritical' global energy transition narrative, saying, 'It has put Africa at a disadvantage.'
According to him, the prevailing global discourse on energy transition is largely influenced by geopolitical considerations.
Lokpobiri called on African nations to repatriate investments held overseas and channel them into the African Energy Bank to bolster the continent's energy security.
During a meeting with his Ghanaian counterpart, Lokpobiri advised Ghana to draw lessons from Nigeria's past experiences in the energy sector, particularly in avoiding early missteps.
In his address, Ghana's Minister of Energy and Green Transition, Mr John Abdullahi, acknowledged Nigeria's leading role in the region.
He stated that while Ghana is a relatively new player in the oil and gas sector, it is eager to learn from Nigeria's experiences and reforms, especially in the areas of local content development and climate policy.
'We will continue to consult Nigeria as we build a successful oil and gas industry.
'The collaboration between both countries remains strong,' Abdullahi said.
Earlier, the Chairman of PETAN, Mr Wole Ogunsanya, emphasised the significance of Nigeria's presence at OTC.
Ogunsanya said: 'This year's event, under the Nigerian Pavilion, is set to highlight Africa's growing role in the global energy sector.
'OTC 2025 promises to bring together top-tier industry leaders, policymakers, and stakeholders at the world's largest energy event.'
He noted that PETAN's consistent participation over the years had significantly contributed to the growth of Nigeria's oil and gas industry.
Ogunsanya recalled that two decades ago, the Nigerian National Petroleum Corporation (NNPC) tasked PETAN with coordinating Nigeria's activities at OTC, with the primary objective of attracting investment and fostering strategic partnerships.
He underscored the imperative for Nigeria to continue building capacity and driving value creation across the entire oil and gas value chain.
The event was well-attended by Nigerian government officials, key stakeholders in the oil and gas sector, exhibitors, and delegates from various West African nations.
Copyright © 2022 Nigerian Tribune Provided by SyndiGate Media Inc. (Syndigate.info).
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