News

February 29, 2024

Nigeria gets 60% of $30bn Afreximbank oil & gas fund

Afreximbank grows assets to $19bn

Afreximbank

In the face of dwindling international funding for hydrocarbon projects in Africa, the African Export-Import Bank, AfreximBank, disclosed yesterday it has become the largest financier of oil and gas projects on the continent.

The bank said it had so far spent $30 billion to fund projects in the industry, with Nigeria getting 60 per cent of the funding.

Speaking at the National Oil Companies Forum at the ongoing Nigeria International Energy Summit, NIES, in Abuja, President, Afreximbank, Professor Benedict Oramah, said Africa has to find innovative solutions to its huge energy deficit.

Represented by Mr. Haytham ElMaayergi, Executive Vice President, Global Trade Bank, Prof. Oramah lamented that it was incomprehensible that in a continent with abundant oil, gas and solar hydro resources, the bulk of the population still lacked access to reliable and affordable energy.

He explained that the continent lacked extensive traditional energy infrastructure, but noted that this presents an opportunity for leapfrogging in a more efficient way to renewable technology.

“Our aspiration in the area of energy security and energy transition will remain aspiration unless we have access to adequate funding resources that we control.

‘’With a lot of international banks withdrawing funding out of the oil and gas sector, the investment in the industry has become severely limited, with corresponding impact on exploration and production.

“Afreximbank has intervened in a big way, quickly becoming the largest financier of oil and gas deals on the continent.

‘’The support provided to the sector by the bank is in excess of $30 billion. Nigeria has been one of the largest beneficiaries accounting for almost 60 per cent of the total funding of the sector.

“It’s important to the point that Afreximbank has been able to make those modest contributions in the oil and gas sector because the bank is predominantly African in ownership and control,” Oramah stated.

He disclosed that Afreximbank would be managing the proposed Africa Energy Bank to ensure its best chance of success.

“The strategic goal of the Africa Energy Bank is to play a leadership role in shaping the energy landscape in Africa through strategic partnership with proven African and international financial institutions and investors and also to provide sustainable financing in this area of the oil and gas sector.

“The Africa Energy Bank will need considerable support to get off the ground. We will need support from member states to achieve the level of capitalization that is adequate to support the energy sector,” he added.