Nigeria, Angola, and Ghana have taken a decisive step toward establishing the Africa Energy Bank (AEB), fulfilling their capital commitments to the multibillion-dollar financial institution designed to support the continent’s oil and gas industry. This marks a significant milestone, representing 44% of the minimum required funding from the African Petroleum Producers Organisation (APPO) members to initiate the bank’s operations.

Announced at the Congo Energy & Investment Forum, the progress was confirmed by APPO Secretary General, Dr. Omar Farouk Ibrahim, in a statement released by the African Energy Chamber (AEC). The AEB is set to launch with an initial capitalization of $5 billion, a critical financial resource aimed at addressing funding challenges exacerbated by the reluctance of Western institutions to support fossil fuel projects due to environmental concerns.

APPO’s plan requires each of its 18 member states to contribute $83 million toward the fund. Alongside Nigeria, Angola, and Ghana, five other nations—Algeria, Benin, the Republic of Congo, Equatorial Guinea, and Ivory Coast—have pledged to fulfill their commitments, aligning with the bank’s target to commence operations in the first half of 2025.

The AEC emphasized Nigeria’s leadership in Sub-Saharan Africa’s oil sector, highlighting regulatory reforms under the Petroleum Industry Act (PIA) aimed at boosting investment transparency. Recent Final Investment Decisions (FIDs) in Nigeria include TotalEnergies’ $550 million Ubeta Gas Field Development and Shell’s $5 billion Bonga North Project. However, securing additional financing remains crucial to advancing the country’s gas agenda and ensuring its role in the energy transition.

Angola, Africa’s second-largest oil producer, continues to expand its energy portfolio with projects such as TotalEnergies’ $6 billion Kaminho Deepwater Project and Eni’s Agogo Integrated West Hub. The country also aims to make a Final Investment Decision on its first green hydrogen project in 2025. Additionally, Angola is upgrading its LNG infrastructure and developing its first non-associated gas project, the New Gas Consortium.

Ghana is strengthening its position as a key energy player, with Eni and Tullow Oil advancing offshore exploration and production. Recent regulatory reforms have improved fiscal terms, attracting foreign investment. Beyond hydrocarbons, Ghana is modernizing infrastructure, expanding energy access, and diversifying into renewables to enhance long-term energy security.

The establishment of the AEB marks a strategic response to Africa’s need for dedicated financial institutions tailored to its energy landscape. By bridging investment gaps, the bank is expected to accelerate energy project development, enhance energy security, and drive economic growth across the continent.