The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has announced that the African Export-Import Bank (Afreximbank) has raised $19 billion to kick-start operations of the African Energy Bank (AEB), which will be headquartered in Abuja, Nigeria.

The announcement was made during the opening of the Nigerian pavilion at the 2025 Offshore Technology Conference (OTC) in Houston, Texas.

 Lokpobiri emphasized that the new energy bank will be instrumental in addressing Africa’s critical energy financing needs and repositioning the continent to take charge of its energy development.

According to the minister, Afreximbank will transfer $14 billion of its current energy-related investments into the AEB, while an additional $5 billion in fresh capital will serve as start-up funding for the bank.

 This significant financial base is expected to empower the institution to support oil, gas, and emerging energy infrastructure projects across the continent.

“Africa’s energy poverty cannot be solved by waiting for others. We must collaborate to solve our own energy problems,” Lokpobiri stated, noting the need for Africans to drive energy investments that reflect the continent’s unique development priorities.

Nigeria’s successful bid to host the bank’s headquarters in Abuja marks a strategic victory for the country. President Bola Ahmed Tinubu played a pivotal role in securing the bid by approving a $100 million investment commitment — a sum that exceeds the minimum $83.33 million required from member states of the African Petroleum Producers Organization (APPO).

This hosting opportunity positions Nigeria at the forefront of Africa’s energy financing and policy landscape, reinforcing its status as a leading oil and gas player on the continent.

The African Energy Bank is a joint initiative of Afreximbank and APPO, designed to close the widening financing gap faced by African energy projects. 

With many global financial institutions reducing investments in fossil fuels, African oil and gas-producing countries have found it increasingly difficult to attract capital for new developments.

The AEB aims to fill this void by offering tailored financial products for the continent’s energy sector, including funding for upstream exploration, refining, infrastructure, and energy transition initiatives.

The launch of the AEB is widely regarded as a critical step in achieving energy security and supporting sustainable economic growth across Africa.

 It aligns with broader efforts to address energy poverty, create jobs, and reduce reliance on foreign financing.

Energy experts have praised the initiative, highlighting that the bank could serve as a model for other sector-specific development finance institutions across Africa.

With the capital now in place, stakeholders are optimistic that the African Energy Bank will officially commence operations within the coming months, ushering in a new era of self-driven energy financing for the continent.