By Emeka Ugwuanyi
Barring any unforeseen circumstances, the African Energy Bank will begin operations this 2024 with a takeoff capitalization of $5 billion.
The Secretary General of the African Petroleum Producers Organisation (APPO), Dr. Omar Farouk Ibrahim, disclosed this in his remarks at the Nigerian Local Content AfCFTA Energy Summit organised by the Nigerian Content Development and Monitoring Board (NCDMB) in partnership with the Petroleum Technology Association of Nigeria (PETAN).
Dr. Dr. Omar Farouk Ibrahim advocated for synergy among African countries, noting that no African oil-producing country can provide the financial, technological, and marketing resources that it needs to be self-sufficient.
Therefore, to him, “If resources are pooled together, African countries can go far.” He advised Nigerian oil and gas companies to be diplomatic when engaging their counterparts from other African countries and to co-opt other nationals when planning to operate in foreign jurisdictions.
He said: “You need to have diverse shareholding and include nationals from other countries when you move to other African countries to operate. Do not create the impression that you want to dominate.”
The APPO Scribe further revealed that the $5billion capitalization of the African Energy Bank will be raised by the 18 member nations of APPO, adding that the member nations have begun paying up their shareholding, which is $83million per country.
He explained that the African Energy Bank would be a veritable platform to fund oil and gas projects within the continent and mitigate the withdrawal of international financiers because of the clamour for renewable energy.
He also confirmed that APPO was working to establish international research centres of excellence in different regions of the continent, which would cater to the research needs of oil companies operating in Africa and curb their dependence on international research centres for research solutions.
He stated that APPO is working to enhance the market for African oil and gas resources and ensure that crude oil and gas resources that are produced in Africa get consumed within the African continent. This is important because of the threat of energy transition, which is expected to substantially shrink the demand for crude oil and gas resources internationally, he said, adding another important and related action is the construction of a continent-wide pipeline system that could convey crude oil, refined products, and gas across different countries of the continent.
