Energy
African Energy Bank Unveils $10bn Project for Nigeria, Angola, Libya
Africa is poised for a significant leap in oil and gas investment, as $10 billion in funding will be mobilised through the newly established African Energy Bank to support strategic energy projects across the continent.
This announcement was made by the Secretary General of the African Petroleum Producers’ Organisation, Farid Ghezali on Tuesday in Abuja, during the opening ceremony of the 9th Nigeria International Energy Summit 2026, which convened stakeholders from governments, regional petroleum organisations, and the private sector to chart a path for sustainable energy-led industrialisation.
He said the initial phase of this pan-African initiative will focus on Nigeria, Angola, and Libya, targeting key upstream, midstream, and downstream developments.
Ghezali highlighted the urgent need to mobilise capital and deepen regional cooperation, adding that the funding is expected to unlock stalled projects, attract global investors, and enhance regional energy self-sufficiency, providing a long-awaited solution to the continent’s chronic underinvestment in critical energy infrastructure
The fund, aimed at accelerating upstream, midstream, and downstream developments across the three countries, is expected to unlock stalled projects, enhance regional energy security, and create thousands of jobs.
He further called on investors, both local and international, to prepare for immediate opportunities, stressing that this initiative will provide structured financing, access to global capital markets, and support for projects with strong environmental, social, and governance frameworks.
“Allow me to present to you our phased growth. Phase 1 is the African Energy Bank platform with a $10 billion project involving Nigeria, Angola, and Libya, supported by APPO certification and major international oil companies such as Shell and Eni,” Ghezali said.
He added that Phase 2, set for 2027, will introduce a regional gas hub trading system, integrating the Congo Brassaville Declaration and promoting 50 per cent local content in projects. Phase 3, projected for 2030, will see the African Energy Bank mature into a $212 billion financial hub, supporting gas transition and energy transformation across the continent.
The APPO official said the fund is expected to begin rewriting the wrongs of decades of resource underutilisation, as the continent still exports about 70 per cent of its crude oil and 45 per cent of its natural gas, losing an estimated $15 billion annually in value that could be generated locally, particularly in midstream and downstream activities.
Ghezali explained that financing remains a major bottleneck, with borrowing costs in Africa ranging from 15–20 per cent, compared to just 4–6 per cent in Asia.
“Energy is, without a doubt, the engine of peace and prosperity. It lights our homes, powers our industries, creates jobs, and propels us into a brighter future. For Africa, which is rich in energy resources, the challenge is not only to extract, but to transform these resources into real shared wealth for our population.”
“Ladies and gentlemen, despite our immense potential, Africa is facing a paradoxical and frustrating reality. We are still exporting about 70 per cent of our crude oil and 45 per cent of our natural gas, losing $15bn per year in added value that we could generate locally, especially in the midstream and downstream segments. Financing remains the main bottleneck hindering the development of our strategic projects.
“More than 150 essential projects, from refineries to pipelines, such as the AKK pipeline, to gas infrastructure remain blocked. What for? Because the cost of financing in Africa is 15-20 per cent compared to only 4-6 per cent in Asia. This disparity is unacceptable and slows down our progress,” he added.
He stressed that fragmented energy financial ecosystems and isolated national oil companies have hindered progress, limiting the continent’s ability to attract large-scale capital.
“The African Energy Bank is our pragmatic solution,” Ghezali said. “It is not just a financial institution, it is a pan-African platform for equipment exchange, energy services, and innovative financing to support structured projects. It will unlock $200 billion for midstream and downstream initiatives by 2030, standardise regional pricing, generate 500,000 direct jobs, and connect certified projects to global sovereign wealth funds.”
Ghezali explained that the African Energy Bank, scheduled to launch in Abuja in the first half of 2026, is designed to address Africa’s long-standing energy financing challenges, including fragmented national oil company operations and the lack of a unified regional capital platform.
He highlighted the tangible benefits of the initiative, noting that the program will provide project financing, achieve regional savings of up to 30 per cent on import costs, create 500,000 direct jobs, and attract sovereign wealth from global investors.
“The African Energy Bank is much more than a financial institution. It is a pan-African platform for the exchange of equipment, energy services, and a catalyst for innovative financing to support structured energy projects,” he said. “It is time for Africa to produce what we consume and consume what we produce.”
Ghezali further explained that the bank will unlock immediate liquidity by listing shares of national energy companies and aims to raise $15 billion within three years.
The platform will also standardise regional pricing for oil and gas, giving member countries potential savings of $1.4 billion annually, and provide direct access to global capital markets, including sovereign wealth funds such as IDAA and BIA, alongside structured public-private partnerships.
“This initiative will help Africa capture value from midstream and downstream projects, strengthen regional cooperation, and position our continent as a hub for sustainable energy development,” he concluded.
On his part, Executive Secretary of the African Refiners & Distributors Association, Anibor Kragha, stressed the importance of building a resilient intra-African oil and gas industry to meet future energy demands.
“Africa must seize this opportunity to build a robust domestic industry that champions energy security. By refining more crude locally and processing natural gas within the continent, we strengthen regional trade, protect local currencies, and insulate our economies from global shocks,” Kragha said.
He cited Nigeria’s leadership in local refining and petrochemical initiatives, highlighting companies like the Dangote Petrochemical refinery and other modular refineries, which are driving innovation, regional trade, and industrial development.
Kragha also welcomed the African Energy Bank headquarters in Abuja and the bank’s financing distribution plan, noting it would catalyse investments in refineries, pipelines, LPG infrastructure, and downstream manufacturing.
“Our projects must meet critical success factors: effective regulatory frameworks, robust project preparation, clear ESG objectives, and strategic human capital development,” he said.
“As Muhammad Ali once said, ‘If your dreams don’t scare you, they aren’t big enough.’ Africa must aggressively pursue its goal of becoming a West African refinery hub, embracing emerging solutions like green hydrogen and second-generation biofuels.”
The African Energy Bank was conceived to overcome long-standing challenges in project financing, regulatory coordination, and regional energy integration.
By pooling capital, aligning policy frameworks, and providing direct access to investors, the bank aims to reduce import dependency, strengthen energy security, and stimulate industrialisation across member countries.
The launch of the bank aligns with Africa’s projected energy demand growth, particularly in Nigeria, which will become the world’s third-largest population by 2050. Regional energy infrastructure such as the AKK pipeline, OB3, and other gas networks will serve as the backbone for industrial development, creating economic multipliers through refining, petrochemicals, and domestic energy access.
The APPO and ARDA emphasised that the African Energy Bank will also support energy transition projects, including low-carbon fuels for shipping and aviation, helping Africa align with global emission reduction targets by 2050.
PUNCH
OPEC oil output in May hit its lowest in more than two decades, a Reuters survey found, as a U.S. naval blockade cut Iran’s exports and Iran’s effective closure of the Strait of Hormuz slashed exports by other Gulf producers.
Output by the 11-member Organization of the Petroleum Exporting Countries fell by 1.06 million barrels per day month-on-month to 16.13 million bpd, the survey found.
That was the lowest monthly figure since at least 2000, according to Reuters surveys, and well below the levels seen during the COVID-19 pandemic in 2020 when demand collapsed.
The figures exclude the United Arab Emirates which quit OPEC as of May 1.
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Saudi Arabia had a further decline, although Iraq was able to increase supply due to increased domestic use, sources in the survey said.
Venezuela and Nigeria also pumped more.
Eight members of the OPEC+ producer group, which includes OPEC plus allies including Russia, had agreed to raise production in May, but the Iran war and U.S. blockade made that impossible.
The Reuters survey is based on flow data from financial group LSEG, information from other companies that track flows, such as Kpler, and information provided by sources at oil companies, OPEC and consultants.
Credit – Times of India
Shell Nigeria Gas (SNG) shared its experiences in pioneering gas distribution nearly 30 years ago, and identified the expansion of pipeline natural gas infrastructure and the market‑making role of gas distributors as critical in moving gas from a policy aspiration to a practical energy solution for Nigerian industries.
“When SNG started in Agbara–Ota over 20 years ago, demand was nowhere near what it is today,” recalled Managing Director Ralph Gbobo at a panel session on “Building a Bankable Gas Distribution Ecosystem: Infrastructure, Capital and Market Demand” at the 2nd business forum of the Association of Local Distributors of Gas (ALDG) in Abuja late last week.
Represented by Head, Gas Distribution, Chukwuka Amos-Ejesi, Raph said: “The economics was not perfect, but there was a leap of faith anchored on Nigeria’s industrialisation trajectory. That decision has proven right.”
He said SNG’s persistence proved that when demand ambition, supply certainty, enabling infrastructure, and commercial clarity come together, even if not perfectly at the start, it creates industrial clusters that can grow and attract long-term capital. “Sustainability and bankability emerge over time, as utilization deepens and confidence builds,” he pointed out.
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The theme of the forum was “From Gas Abundance to Gas Access: Reassessing Nigeria’s Gas Distribution Imperatives,” with industry leaders and other stakeholders discussing the use of gas to drive industrialisation. The panel session agreed on the need for “clear, supportive and credible policy frameworks, especially measures designed to improve the use of gas.
Ralph noted: “The introduction of gas-focused policies, notably the Petroleum Industry Act, marked a turning point. By reinforcing the role of gas in Nigeria’s energy and industrial strategy and embedding instruments such as the Network Code- a critical framework that governs the operations of the Domestic Gas market and ensures transparency and stability, and the Domestic Gas Supply Obligation which compels gas producers to allocate gas to the domestic market, the PIA significantly reduced policy ambiguity around gas development.”
He added: “The introduction of clearer pricing frameworks for gas supply and transportation and a more transparent and competitive licensing regime, has also strengthened market confidence. Together, these measures have improved producer confidence, particularly for domestic gas projects, and signaled the government’s strong commitment to gas as a driver of industrial development.”
Incorporated in 1998 as a fully Shell-owned gas distribution company, SNG currently serves over 150 clients in Abia, Bayelsa, Ogun and Rivers states, partnering with governments and other stakeholders to take the cleaner and more affordable energy to the doorsteps of industries. In the first half of this year alone, the company has connected two additional companies in Ogun State to its gas distribution network.
Photo Caption – L–R: Chairman, Association of Local Distributors of Gas (ALDG), and Managing Director, Axxela Gas Distribution, Kehinde Alabi; and Head of Gas Distribution, Shell Nigeria Gas, Chukwuka Amos-Ejesi, receiving a commendation plaque on behalf of SNG Managing Director, Ralph Gbobo, in recognition of his professional and diligent service on the Governing Board of the Association, at the Association of Local Distributors of Gas (ALDG) Business Forum in Abuja
In what is expected to provide investors and industry stakeholders with a detailed overview of Nigeria’s energy assets and opportunities, her first comprehensive Gas and Power Infrastructure Map will be unveiled at the 25th edition of NOG Energy Week.
It was gathered that the publication, developed by the Gas for Africa programme in partnership with NNPC Limited, will be launched during the annual energy conference in Abuja and is being positioned as a major step towards improving transparency and investment decision-making in Nigeria’s gas and power sectors.
Industry stakeholders have long cited the lack of consolidated and reliable infrastructure data as a major challenge to attracting investment into the sector. The new map seeks to address that gap by providing a single source of information on Nigeria’s gas and power infrastructure, including pipelines, gas processing facilities, power generation assets, LNG terminals and key transmission networks.
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Alongside the infrastructure map, organisers will also release a comprehensive report on Nigeria’s gas sector, which they describe as the most extensive industry intelligence publication ever produced on the country’s gas value chain.
The report examines developments in the sector since 2020 and covers key areas such as the NNPC Gas Master Plan 2026, gas reserves and production trends, pipeline infrastructure, capacity challenges, compressed natural gas (CNG), piped natural gas (PNG), liquefied natural gas (LNG) markets, gas-to-power projects and gas-based industrialisation.
According to the organisers, the publication provides an end-to-end assessment of Nigeria’s gas industry and offers critical insights for investors, policymakers and industry operators.
The launch comes at a time when global energy markets are undergoing significant shifts, driven by geopolitical tensions and increasing demand for alternative and secure energy supplies.
Organisers noted that Nigeria is strengthening its position as a major energy player, supported by rising crude oil production, implementation of a new Gas Master Plan and expanding refining capacity.
They said the infrastructure map and accompanying report are expected to help convert investor interest into concrete projects by providing accurate data on existing assets, infrastructure gaps and future opportunities across the sector.
Attendees at NOG Energy Week will be the first to access both publications as government officials, energy executives, investors and industry leaders gather in Abuja for the five-day event.
The conference is also expected to feature investment discussions, joint venture announcements, memorandum of understanding signings and project partnerships aimed at advancing Nigeria’s energy development agenda.
With preparations gathering momentum ahead of the event, organisers said NOG Energy Week 2026 will provide a platform for stakeholders to examine the future of Nigeria’s energy sector and its role in Africa’s broader energy transition and industrial growth.
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