Nigeria Pushes to Host African Energy Bank

The Nigerian government, facilitated by the Ministry of Petroleum Resources, is earnestly striving to secure the hosting rights for the proposed African Energy Bank (AEB). This determination was articulated by the Permanent Secretary, Mr. Gabriel Aduda, during his address at the 2021 Practical Nigerian Content (PNC) forum in Yenagoa, Bayelsa State, recently.

Aduda also contested the stance of climate change and energy transition advocates who propose a reduction in fossil fuel production. He emphasized that Africa is not obliged to decrease its oil and gas production for the benefit of the world, but should rather focus on contributing to de-carbonisation and emission reduction.

The establishment of the AEB is driven by the African Petroleum Producers Organisation (APPO) in conjunction with the African Export-Import Bank (Afreximbank). The primary objective is to provide $5 billion to support oil and gas projects in African countries. Afreximbank envisions the inauguration of the AEB by June 2024, foreseeing its significant role in addressing the energy crisis on the continent.

Amidst ongoing discussions on climate change and renewable energy, Aduda urged stakeholders in the oil and gas industry not to be disheartened. He underscored the efforts of the Nigerian Content Development and Monitoring Board (NCDMB) and the support provided by the federal government to promote local content and the utilization of the country’s hydrocarbon resources.

Aduda articulated the government’s resolve to position the headquarters of the African Energy Bank in Nigeria. He stressed the importance for African nations to have their own institution that can support the continent’s energy initiatives, rather than relying on external funding that may not align with their interests.

He highlighted the potential drawbacks of a complete shift towards renewable energy, cautioning that it could result in environmental degradation due to increased mining activities and the depletion of essential resources. Aduda also reminded participants that OPEC countries, at the COP28 Climate Change Conference, reiterated their commitment to reducing emissions rather than production.

In summary, Aduda emphasized that fossil fuels remain indispensable in the global energy mix, meeting over 80% of the world’s transportation and energy needs. The Nigerian government’s pursuit to host the African Energy Bank reflects its dedication to promoting sustainable development while leveraging its abundant natural resources.

This underscores the importance of finding a balance between renewable and non-renewable energy sources to ensure sustainable energy for the future. The hosting of the AEB in Nigeria could serve as a testament to the country’s potential to lead the way in addressing energy challenges in Africa.