L-R: Sen. Heineken Lokpobiri, Hon. Minister for State Petroleum Resources (Oil), Federal Government of Nigeria, Dr. George Elombi, President and Chairman of the Board of Directors at Afreximbank and Hon Mamadou Sangafowa-Coulibaly, Minister of Mines, Petroleum and Energy of Côte d’Ivoire during the first General Meeting of the Africa Energy Bank in Abuja, Nigeria.
Nigeria has hosted the formal establishment of the Africa Energy Bank, a new $5bn financial institution designed to fund oil, gas and other energy projects across Africa as traditional international lenders reduce financing for fossil fuel investments.
The African Export-Import Bank and the African Petroleum Producers’ Organisation announced the establishment of the bank at its inaugural general meeting held in Abuja on Saturday, according to a joint statement issued by both institutions.
“African Export-Import Bank and the African Petroleum Producers’ Organisation have formally announced the establishment of the Africa Energy Bank. The announcement was made during the AEB’s inaugural general meeting held in Abuja, Nigeria, on 31 October 2026,” the statement read.
According to the statement, the bank will provide financing for petroleum exploration, production, transportation, refining and distribution, while supporting Africa’s efforts to reduce dependence on imported petroleum products.
The statement added, “With an authorised capital of $5bn, the AEB will support projects across the energy value chain, including exploration and production, transportation, processing, refining, and distribution.”
The establishment of the institution comes amid growing concerns over financing constraints facing Africa’s petroleum industry, particularly as international financial institutions increasingly restrict lending to fossil fuel projects.
Afreximbank and APPO estimated the continent’s energy investment requirements at `$200bn, indicating a substantial funding gap that the new institution is expected to help address.
The bank’s authorised capital of $5bn represents 2.5 per cent of the estimated investment requirement, highlighting the scale of additional financing needed to develop Africa’s energy infrastructure.
The statement explained that conventional sources of long-term and short-term financing were withdrawing support from fossil fuel investments despite the continued importance of oil and gas to African economies.
It stated, “Traditional providers of short- and long-term financing to Africa’s energy sector are withdrawing funding from fossil fuels, even as oil and gas remain vital to the continent’s energy systems.”
The institutions said the new bank would seek to bridge this financing gap while supporting an energy transition that takes account of Africa’s development priorities.
Beyond petroleum production, the bank is expected to support investments that strengthen local processing capacity, expand refining infrastructure and improve the movement of energy products across African markets.
These interventions are intended to reduce reliance on imported refined petroleum products and promote intra-African energy trade.
The statement added, “The Bank’s mandate also includes promoting robust African participation in the continent’s energy sector to ensure that Africa’s energy future is shaped by Africans.”
According to the promoters, the Africa Energy Bank will operate as an independent, supranational pan-African financial institution, attracting investments from governments, national oil companies, financial institutions and private investors.
At the inaugural general meeting, participating institutions approved the appointment of Helmy Ghazi as the bank’s first president.
They also constituted its inaugural Board of Directors, comprising representatives from the public and private sectors and policy institutions across Africa.
The meeting was attended by Nigeria’s Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri; the President and Chairman of Afreximbank, George Elombi; and Côte d’Ivoire’s Minister of Mines, Petroleum and Energy, Mamadou Sangafowa-Coulibaly.
Afreximbank and APPO said the institution would also support investments in energy generation and transmission, which they identified as critical to industrialisation and the growing electricity requirements of emerging technologies, including artificial intelligence.
The establishment of the bank represents a coordinated effort by African petroleum-producing countries to develop alternative financing arrangements for energy projects amid changing global investment priorities.
Afreximbank disclosed that its total assets and contingencies exceeded $54.1bn at the end of September 2026, while shareholder funds stood at $9bn.
APPO, established in Lagos in 1987, promotes cooperation among African petroleum-producing countries through policy coordination, technical collaboration and knowledge sharing.
The new bank is expected to draw on the institutional experience of both organisations to mobilise capital for energy development across the continent.
