Nigeria, Angola, Ghana Lead Drive to Launch $5B Africa Energy Bank by 2025

The AEB is envisioned as a homegrown solution, tailored to Africa’s energy realities, with the capacity to provide long-term, flexible funding for critical upstream, midstream, and downstream projects.

In a groundbreaking move set to reshape the financing landscape for Africa’s oil and gas sector, Nigeria, Angola, and Ghana have officially fulfilled their capital commitments to the Africa Energy Bank (AEB), marking a significant step forward in the institution's establishment. This milestone, announced by Dr. Omar Farouk Ibrahim, Secretary General of the African Petroleum Producers Organization (APPO), at the Congo Energy & Investment Forum last week, signals strong momentum for a pan-African financial institution designed to tackle the continent’s energy funding challenges head-on.

With these three nations' contributions representing 44% of the minimum capital required from APPO member states, the bank is rapidly advancing toward its operational launch, expected in the first half of 2025. APPO, which comprises 18 member countries, has requested each to contribute $83 million, targeting an initial capitalization of $5 billion. In addition to the contributions already received, five more countries – Algeria, Benin, the Republic of Congo, Equatorial Guinea, and Ivory Coast – have pledged to pay their share, bringing the initiative closer to full capitalization.

A Strategic Shift for Africa’s Energy Future

The creation of the AEB responds directly to a pressing need: securing dedicated financing for oil and gas projects across Africa amid growing reluctance from Western financial institutions to back fossil fuel ventures due to environmental and climate change concerns. The AEB is envisioned as a homegrown solution, tailored to Africa’s energy realities, with the capacity to provide long-term, flexible funding for critical upstream, midstream, and downstream projects.

By focusing on energy projects that align with Africa’s development goals, the AEB seeks to ensure that the continent can sustainably exploit its vast oil and gas reserves, reduce energy poverty, and transition toward cleaner sources of energy on its own terms.

Nigeria: Reforms, Investment, and Gas Monetization

As sub-Saharan Africa’s largest oil producer, Nigeria stands at the center of the continent’s energy transformation. The country’s commitment to the AEB is part of broader efforts to revitalize its oil and gas sector. The implementation of the Petroleum Industry Act has introduced sweeping reforms aimed at enhancing transparency, improving regulatory certainty, and attracting foreign investment.

These reforms are bearing fruit. Notable final investment decisions (FIDs) in Nigeria include TotalEnergies’ $550 million Ubeta Gas Field Development and Shell’s $5 billion Bonga North deepwater project. Additionally, the country plans a 2025 licensing round to unlock new reserves and sustain production. However, financing remains a major bottleneck, especially for gas infrastructure needed to support Nigeria’s energy transition and boost domestic power generation.

Angola: Deepwater Growth and a Green Hydrogen Push

Angola is aggressively diversifying its energy portfolio while expanding its already significant deepwater oil developments. The government has set an ambitious goal of increasing oil production to 2 million barrels per day, with support from international oil companies. Ongoing mega-projects include TotalEnergies’ $6 billion Kaminho Deepwater Development, Eni’s Agogo Integrated West Hub, and a series of public tenders for new exploration licenses.

Looking ahead, Angola is preparing to make a final investment decision on its first green hydrogen project by 2025 – a 600 MW facility led by state-owned Sonangol and international partners. The country is also spearheading the New Gas Consortium, its first non-associated gas development, and a massive $12 billion expansion of the Angola LNG plant to enhance gas monetization and exports.

Ghana: Offshore Exploration and Sector Reforms

Ghana continues to strengthen its role as a rising oil and gas hub in West Africa. The government has implemented new policies to enhance fiscal terms and transparency, fostering a more investment-friendly climate. In March, Eni and the Ghana National Petroleum Corporation signed a cooperation agreement to enhance offshore exploration and optimize existing fields.

Meanwhile, Tullow Oil is preparing a major drilling campaign for May 2025 to expand production from the Jubilee and TEN fields. These developments are key to sustaining economic growth and energy security. Ghana is also expanding its energy infrastructure and diversifying into renewables, reinforcing its long-term strategy to balance fossil fuel development with the energy transition.

Africa Energy Bank: Driving Continental Growth

The Africa Energy Bank’s formation comes at a pivotal time. As Africa balances the need for reliable energy with the global push for cleaner energy sources, the AEB offers a uniquely African solution—one that prioritizes energy security and economic development without abandoning environmental considerations. The bank is expected to fund a wide range of projects, from oil and gas infrastructure to power generation and energy access initiatives.

Once operational, the AEB will be headquartered in an APPO member state (still to be announced) and governed by a board composed of contributing countries and financial experts. It will serve as a catalyst for regional collaboration, helping countries pool resources, share technical knowledge, and accelerate project timelines.

Looking Ahead: African Energy Week 2025

African Energy Week (AEW) 2025, scheduled for September 29 to October 3 in Cape Town, South Africa, will be a critical venue to chart the AEB’s next phase. The conference will bring together government leaders, financiers, and energy stakeholders to discuss upstream oil and gas development, downstream infrastructure, the energy transition, and cross-border cooperation.

Notably, AEW 2025 will feature a dedicated energy finance stage spotlighting the AEB’s progress, latest investment trends, and strategies to overcome financial barriers. With robust participation expected from AEB stakeholders and member states, the event promises to solidify the bank’s role as a transformative force for Africa’s energy sector.

A New Era for African Energy

The AEB stands as a bold testament to Africa’s determination to take control of its energy destiny. As more APPO members fulfill their capital commitments and strategic projects come online, the bank is poised to fill a critical gap in financing—supporting a sustainable, inclusive, and African-led energy future.

Through strategic planning, resource mobilization, and strong political will, the Africa Energy Bank could redefine how energy development is financed across the continent—ushering in a new era of energy security, economic empowerment, and continental integration.