Market News

BY  Opeyemi Owoseni

In a major step toward enhancing energy access and driving economic transformation across Africa, Nigeria’s Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has announced that the African Export-Import Bank (Afreximbank) will invest $19 billion in the soon-to-be-launched African Energy Bank (AEB).

Speaking during the opening ceremony of the Nigerian Pavilion at the Offshore Technology Conference (OTC) in Houston, Texas hosted by the Petroleum Technology Association of Nigeria (PETAN) Lokpobiri emphasized the need for African nations to unite in combating the continent’s deepening energy poverty.

According to the minister, the African Petroleum Producers’ Organization (APPO) is spearheading the creation of the AEB, aimed at addressing the continent’s persistent energy financing shortfalls and positioning Africa to take control of its energy future.

“This is an opportunity to let you know that your concerns are gradually being addressed,” Lokpobiri said. “As members of APPO, we are in partnership with Afreximbank, which recently revealed it has an exposure of nearly $14 billion. In addition, a further $5 billion will serve as the initial capital injection, bringing the total to over $19 billion for the African Energy Bank.”

He confirmed that the institution is expected to begin operations within the current quarter, marking a critical milestone in Africa’s quest for energy self-sufficiency.

Lokpobiri highlighted the importance of regional cooperation, asserting that African countries must work together to fund large-scale energy projects, reduce development costs, and accelerate innovation. He noted that collaboration across borders will allow for the exchange of technologies, expertise, and policy frameworks needed to advance the continent’s energy agenda.

With the theme of the 2025 PETAN conference titled “Africa’s Energy Renaissance: Leveraging Innovation and Natural Gas for Sustainable Development”, the minister underscored that the gathering is far from a ceremonial event it is a strategic platform for showcasing Africa’s vast energy potential.

He also cautioned against fragmented energy policies, urging African leaders to develop tailored, cohesive strategies that reflect the continent’s unique challenges and opportunities.

Lokpobiri further described the APPO as a vital entity in Africa’s energy architecture, designed to foster collective problem-solving and drive investment in energy infrastructure.

In a controversial aside, the minister voiced support for the possible return of former U.S. President Donald Trump, stating that it could help slow down what he called the “hypocritical” global energy transition. He argued that the current transition narrative is often shaped by geopolitical interests that disadvantage Africa.

He also called on African nations to repatriate investments held overseas and redirect them into the African Energy Bank to bolster regional energy security.

During a bilateral meeting on the sidelines of the conference, Lokpobiri advised Ghana’s Minister of Energy and Green Transition, John Abdullahi, to learn from Nigeria’s early missteps in the oil and gas industry. Abdullahi, in response, acknowledged Nigeria’s leadership role in the sector and expressed Ghana’s readiness to draw on its neighbor’s experience particularly in areas such as local content development and sustainable policy design.

“We will continue to consult Nigeria as we build a successful oil and gas industry,” Abdullahi affirmed.