The newly established African Energy Bank has launched with an initial USD 10-billion commitment to fund priority oil and gas projects in Nigeria, Angola and Libya, the African Petroleum Producers’ Organization (APPO) said on Thursday, in comments cited y local media.
The first phase of the initiative will target upstream, midstream and downstream developments, with a focus on revitalising stalled projects and strengthening regional energy security. The announcement was made during the 9th Nigeria International Energy Summit 2026 by Farid Ghezali, secretary-general of APPO.
Nigeria was selected to host the bank, reflecting its status as Africa’s top oil producer. The move is expected to boost investor confidence and unlock long-term financing for gas, refining and petrochemicals ventures.
The funding platform will seek to attract global capital while adhering to ESG standards. Phased expansion plans include a regional gas trading hub by 2027 and a transformation into a USD 212-billion financing platform by 2030.
“Africa continues to lose significant value by exporting raw hydrocarbons,” Ghezali was quoted as saying. “Energy is, without a doubt, the engine of peace and prosperity.”
The Africa Energy Bank is a landmark financial institution established through a strategic partnership between APPO and the African Export-Import Bank. Its creation aims to address persistent underinvestment and high borrowing costs in African energy infrastructure by mobilising private-sector capital for oil, gas and broader energy projects across the continent.
With an initial share capital of USD 5 billion, the supranational bank operates independently of any central bank and is majority-owned by APPO and Afreximbank. APPO member states are contributing through NOCs, sovereign wealth funds and other entities. Backed by IOCs including Shell and Eni, the bank is positioned as a key financier of upstream, midstream and downstream energy developments.
The bank’s mandate includes financing hydrocarbons projects, enabling intra-African energy trade, and supporting energy transition initiatives in both member and non-member states. It also aims to enhance energy security, drive regional integration and support innovation in fossil and renewable energy.
In 2025, Matthieu Bouyer, managing director of TotalEnergies EP Nigeria, told The Energy Year that the bank would solve a key challenge for local companies.
“Indigenous companies often have to take on large loans to fund asset development. However, after repaying these loans, there’s limited capital left for reinvestment before the assets become fully profitable,” he said.
“The establishment of the African Energy Bank in Nigeria is a positive step towards addressing this issue and supporting local players in the industry.”
APPO is a regional intergovernmental body promoting cooperation among African oil-producing countries. It facilitates collaboration on energy policies, financing mechanisms and local content development.