By Kpakpanda Richard

Nigeria’s Minister of State for Petroleum Resources (Oil), Sen. Heineken Lokpobiri, has announced that the African Energy Bank (AEB) will commence operations in the first quarter of 2025, with an initial capitalization of $5 billion and a projected growth to $20 billion.

Speaking at the Sub Saharan Africa International  Petroleum Exhibition and Convention(SAIPEC) convention , yesterday, Lokpobiri underscored Nigeria’s significant strides in local content development since the enactment of the Local Content Act in 2010.

He emphasized the need for African nations to strengthen local capacity, particularly in the wake of major international service companies exiting the continent.

The Minister criticized what he termed the “hypocrisy of the global north,” accusing developed nations of pushing for production cuts in Africa while continuing to expand their own fossil fuel consumption. He argued that Africa contributes minimally to global emissions compared to major polluters like the United States and the United Kingdom.

Lokpobiri stressed that Nigeria, as a leader in Africa’s oil and gas sector, must set an example by ensuring energy security through indigenous participation. He warned against repeating past mistakes that led to dependence on foreign service providers, highlighting that newly acquired oil assets remain in capable local hands despite international divestments.

He also called for a strategic peer-review mechanism among African countries to foster knowledge sharing and avoid pitfalls that previously hindered Nigeria’s energy sector’s growth.

Describing the African Energy Bank as a pivotal step towards energy independence, Lokpobiri revealed that Nigeria is prepared to host the institution’s headquarters. He urged African governments to commit funds to the bank, positioning it as a financial backbone for industrialization and energy development across the continent.

“The establishment of the African Energy Bank will provide sustainable financing for Africa’s energy needs, ensuring that we control our resources and determine our future,” he said.

Beyond financing, the Minister emphasized the role of innovation in securing Africa’s energy future. He disclosed that Nigeria, in collaboration with UK institutions, is developing a specialized university program to train PhD students locally in energy-related fields.

Furthermore, he urged African stakeholders to invest in carbon capture technologies to address emissions while maintaining production, arguing that the global north is not doing enough in this regard.

To attract sustained global investment, Lokpobiri called for a predictable and transparent regulatory environment. He also advocated for dedicating specific reservoirs for condensate production to meet local demand and reduce dependency on imports.

In his concluding remarks, the Minister urged African leaders to prioritize development over dependency, fostering collaboration to achieve energy security across the continent.

“Africa must unite to chart its own path in energy development. We cannot afford to be at the mercy of external forces. Now is the time to invest in ourselves,” he said.