New African Energy Bank Targets $10bn Funding for Nigeria, Angola, Libya
- Africa plans to mobilise $10bn through the African Energy Bank for energy projects
- The first phase will focus on Nigeria, Angola and Libya
- The initiative aims to unlock stalled projects and attract global investors
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
Africa is set to unlock about $10 billion in fresh oil and gas investments through the newly established African Energy Bank, aimed at supporting strategic energy projects across the continent, according to the African Petroleum Producers’ Organisation (APPO).
Source: Getty Images
The first phase of the initiative will focus on Nigeria, Angola and Libya, with funding directed at upstream, midstream and downstream projects.
The announcement was made by APPO Secretary General, Farid Ghezali, on Tuesday in Abuja at the opening of the 9th Nigeria International Energy Summit 2026, which brought together government officials, regional petroleum bodies and private sector players to discuss energy-led industrial development in Africa.
New Africa Energy Bank to focus on long-term projects
Ghezali said the bank is designed to address long-standing funding gaps that have slowed energy infrastructure development across the continent. He added that the $10bn funding platform is expected to unlock stalled projects, attract global investors and improve regional energy self-sufficiency, while creating thousands of jobs.
He explained that the initiative will provide structured financing and support projects that meet strong environmental, social and governance standards.
Ghezali said the African Energy Bank platform, backed by APPO certification and supported by major international oil companies such as Shell and Eni, marks the first phase of a broader growth plan.
Africa Energy Bank to open regional gas trading hub
He disclosed that a second phase planned for 2027 will introduce a regional gas trading hub, promote 50% local content and integrate existing continental energy agreements.
By 2030, the third phase is expected to transform the African Energy Bank into a $212bn financial hub to support gas transition and broader energy transformation across Africa.
The APPO official said the initiative is aimed at reversing decades of underinvestment and value loss in Africa’s energy sector. He noted that the continent still exports about 70% of its crude oil and 45% of its natural gas, resulting in an estimated annual loss of $15bn in potential local value, particularly in midstream and downstream activities.
APPO official notes funding challenge
Ghezali identified high financing costs as a major challenge, stating that borrowing costs in Africa range between 15% and 20%, compared with 4% to 6% in parts of Asia. He added that fragmented financial systems and isolated national oil companies have further limited Africa’s ability to attract large-scale capital.
Describing the African Energy Bank as a practical solution, Ghezali said it will serve as a pan-African platform for energy services, equipment exchange and innovative financing. He added that the bank aims to unlock up to $200bn for midstream and downstream projects by 2030, standardise regional pricing and generate up to 500,000 direct jobs.
The bank, which is expected to be launched in Abuja in the first half of 2026, will also seek to raise $15bn within three years by listing shares of national energy companies. It is expected to provide direct access to global capital markets, including sovereign wealth funds, and support structured public-private partnerships.
Source: Getty Images
Refiners call for stronger domestic energy security
Also speaking at the event, Executive Secretary of the African Refiners and Distributors Association (ARDA), Anibor Kragha, stressed the need for Africa to build a resilient domestic oil and gas industry.
He said increased local refining and gas processing would strengthen regional trade, support local currencies and reduce exposure to global shocks.
Kragha highlighted Nigeria’s role in local refining initiatives, citing the Dangote refinery and modular refineries as examples of projects driving industrial growth and regional trade. He welcomed the decision to locate the African Energy Bank’s headquarters in Abuja, noting that it would help catalyse investments in refineries, pipelines and downstream manufacturing.
APPO and ARDA said the bank will also support energy transition projects, including low-carbon fuels, as Africa works towards meeting global emissions reduction targets while meeting rising energy demand.
Refinery owners in Nigeria lament feedstock shortages
Legit.ng earlier reported that several local refiners, including the Dangote Petroleum Refinery, have raised concerns about inadequate crude supply despite Nigeria being a major crude oil exporter.
The Dangote refinery, for instance, has, at different times, sourced crude oil from the United States and neighbouring countries such as Ghana to sustain operations. This is even as Nigeria exported an estimated 306 million barrels of crude oil between January and October 2025.
The Crude Oil Refiners Association of Nigeria (CORAN) said some of its members were forced to shut down intermittently due to difficulties accessing crude oil.
Source: Legit.ng
