(Ecofin Agency) - To meet Africa's energy and climate goals by 2030, the IEA estimates that over $200 billion in yearly investments will be needed to address the continent's rising energy demands.

The African Energy Bank (AEB) is set to begin operations on January 28, 2025, according to a statement from the Nigerian government. This announcement followed the 19th board meeting of the African Petroleum Producers’ Organization (APPO) held on October 30 in Yaoundé, Cameroon.

PRESS RELEASE

Nigeria sets date for take-off of $5 billion Africa Energy Bank

The Nigerian Government has set 28th January 2025 as the deadline for the operationalisation of the $5 billion Africa Energy Bank in Abuja, the nation's capital city.

Nigerian delegation led by the… pic.twitter.com/YYEDz6FP7k

— Fed Min of Info & Nat’l Orien (@FMINONigeria) November 3, 2024

Established in June 2024 by APPO in partnership with Afreximbank, AEB aims to support financing for African oil, gas, and possibly renewable energy projects. The institution was created with an initial capital of $5 billion, targeting Africa’s energy shortfall by tapping into the continent’s substantial oil and natural gas reserves.

Nigeria’s Minister of Petroleum, Nicholas Agbo Ella, confirmed that construction of AEB’s headquarters in Abuja is nearly complete, with the inauguration planned for January 2025. Nigeria has already contributed $69.12 million toward the bank’s capital, he added.

APPO’s Secretary-General, Dr. Omar Farouk Ibrahim, noted that 50% of the funds needed to start AEB operations are already secured. He urged member countries to continue their contributions to ensure the bank’s timely launch.

Access to energy remains a critical issue across Africa. According to the International Energy Agency (IEA), 600 million people on the continent lack electricity. Achieving Africa’s energy and climate goals by 2030 will require over $200 billion in annual investments.