African Energy Bank embarks on $10bn project for Nigeria, Angola, Libya
Elegbede Abiodun
Africa is set for a significant leap in oil and gas investment as $10 billion in funding will be mobilised through the newly established African Energy Bank to enhance strategic energy projects across the continent.
This announcement was made by the Secretary General of the African Petroleum Producers’ Organisation, Farid Ghezali on Tuesday in Abuja, during the opening ceremony of the 9th Nigeria International Energy Summit 2026, which convened stakeholders from governments, regional petroleum organisations, and the private sector to chart a path for sustainable energy-led industrialisation.
He said the initial phase of this pan-African initiative will focus on Nigeria, Angola, and Libya, targeting key upstream, midstream, and downstream developments.
Ghezali highlighted the urgent need to mobilise capital and deepen regional cooperation, adding that the funding is expected to unlock stalled projects, attract global investors, and enhance regional energy self-sufficiency, providing a long-awaited solution to the continent’s chronic underinvestment in critical energy infrastructure.
The fund, aimed at accelerating upstream, midstream, and downstream developments across the three countries, is expected to unlock stalled projects, enhance regional energy security, and create thousands of jobs.
He further called on investors, both local and international, to prepare for immediate opportunities, stressing that this initiative will provide structured financing, access to global capital markets, and support for projects with strong environmental, social, and governance frameworks.
“Allow me to present to you our phased growth. Phase 1 is the African Energy Bank platform with a $10 billion project involving Nigeria, Angola, and Libya, supported by APPO certification and major international oil companies such as Shell and Eni,” Ghezali said.
He added that Phase 2, set for 2027, will introduce a regional gas hub trading system, integrating the Congo Brassaville Declaration and promoting 50 per cent local content in projects. Phase 3, projected for 2030, will see the African Energy Bank mature into a $212 billion financial hub, supporting gas transition and energy transformation across the continent.
The APPO official said the fund is expected to begin rewriting the wrongs of decades of resource underutilisation, as the continent still exports about 70 per cent of its crude oil and 45 per cent of its natural gas, losing an estimated $15 billion annually in value that could be generated locally, particularly in midstream and downstream activities.
Ghezali explained that financing remains a major bottleneck, with borrowing costs in Africa ranging from 15–20 per cent, compared to just 4–6 per cent in Asia.
“Energy is, without a doubt, the engine of peace and prosperity. It lights our homes, powers our industries, creates jobs, and propels us into a brighter future. For Africa, which is rich in energy resources, the challenge is not only to extract, but to transform these resources into real shared wealth for our population.”
“Ladies and gentlemen, despite our immense potential, Africa is facing a paradoxical and frustrating reality. We are still exporting about 70 per cent of our crude oil and 45 per cent of our natural gas, losing $15bn per year in added value that we could generate locally, especially in the midstream and downstream segments. Financing remains the main bottleneck hindering the development of our strategic projects.
“More than 150 essential projects, from refineries to pipelines, such as the AKK pipeline, to gas infrastructure remain blocked. What for? Because the cost of financing in Africa is 15-20 per cent compared to only 4-6 per cent in Asia. This disparity is unacceptable and slows down our progress,” he added.
He stressed that fragmented energy financial ecosystems and isolated national oil companies have hindered progress, limiting the continent’s ability to attract large-scale capital.
“The African Energy Bank is our pragmatic solution,” Ghezali said. “It is not just a financial institution, it is a pan-African platform for equipment exchange, energy services, and innovative financing to support structured projects. It will unlock $200 billion for midstream and downstream initiatives by 2030, standardise regional pricing, generate 500,000 direct jobs, and connect certified projects to global sovereign wealth funds.”
Ghezali explained that the African Energy Bank, scheduled to launch in Abuja in the first half of 2026, is designed to address Africa’s long-standing energy financing challenges, including fragmented national oil company operations and the lack of a unified regional capital platform.
He highlighted the tangible benefits of the initiative, noting that the program will provide project financing, achieve regional savings of up to 30 per cent on import costs, create 500,000 direct jobs, and attract sovereign wealth from global investors.
“The African Energy Bank is much more than a financial institution. It is a pan-African platform for the exchange of equipment, energy services, and a catalyst for innovative financing to support structured energy projects,” he said. “It is time for Africa to produce what we consume and consume what we produce.”
Ghezali further explained that the bank will unlock immediate liquidity by listing shares of national energy companies and aims to raise $15 billion within three years.
The platform will also standardise regional pricing for oil and gas, giving member countries potential savings of $1.4 billion annually, and provide direct access to global capital markets, including sovereign wealth funds such as IDAA and BIA, alongside structured public-private partnerships.
“This initiative will help Africa capture value from midstream and downstream projects, strengthen regional cooperation, and position our continent as a hub for sustainable energy development,” he concluded.
On his part, Executive Secretary of the African Refiners & Distributors Association, Anibor Kragha, stressed the importance of building a resilient intra-African oil and gas industry to meet future energy demands.
“Africa must seize this opportunity to build a robust domestic industry that champions energy security. By refining more crude locally and processing natural gas within the continent, we strengthen regional trade, protect local currencies, and insulate our economies from global shocks,” Kragha said.
He cited Nigeria’s leadership in local refining and petrochemical initiatives, highlighting companies like the Dangote Petrochemical refinery and other modular refineries, which are driving innovation, regional trade, and industrial development.
Kragha also welcomed the African Energy Bank headquarters in Abuja and the bank’s financing distribution plan, noting it would catalyse investments in refineries, pipelines, LPG infrastructure, and downstream manufacturing.
“Our projects must meet critical success factors: effective regulatory frameworks, robust project preparation, clear ESG objectives, and strategic human capital development,” he said.
“As Muhammad Ali once said, ‘If your dreams don’t scare you, they aren’t big enough.’ Africa must aggressively pursue its goal of becoming a West African refinery hub, embracing emerging solutions like green hydrogen and second-generation biofuels.”
The African Energy Bank was conceived to overcome long-standing challenges in project financing, regulatory coordination, and regional energy integration.
By pooling capital, aligning policy frameworks, and providing direct access to investors, the bank aims to reduce import dependency, strengthen energy security, and stimulate industrialisation across member countries.
The launch of the bank aligns with Africa’s projected energy demand growth, particularly in Nigeria, which will become the world’s third-largest population by 2050. Regional energy infrastructure such as the AKK pipeline, OB3, and other gas networks will serve as the backbone for industrial development, creating economic multipliers through refining, petrochemicals, and domestic energy access.
APPO and ARDA emphasised that the African Energy Bank will also support energy transition projects, including low-carbon fuels for shipping and aviation, helping Africa align with global emission reduction targets by 2050.
