By Sunday Etuka, Abuja
President Bola Tinubu has approved Abuja as the host city for the proposed Africa Energy Bank’s headquarters.
The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri disclosed this via his X handle on Thursday.
He said, “with the President’s approval, we have secured Abuja as the host city for the proposed Africa Energy Bank’s headquarters”.
The bank is an initiative of the African Petroleum Producers Organization (APPO), in partnership with the Afreximbank, aimed at financing the continent’s energy sector.
Nigeria beat Algeria, Egypt, Ghana, South Africa, Benin Republic, and Côte d’Ivoire to secure the hosting right.
Expected to start operations next month (June), with an initial $5 billion authorized capital base, each of the 18-member countries is invited to subscribe $83.3 million.
So far, Nigeria has subscribed with $100 million, Ghana deposited $20 million and Angola $10 million.
Speaking further, the Minister said, upon his appointment, President Tinubu gave him a clear directive to increase crude oil production.
He affirmed that with the mandate he was able to increase oil production from below 1 million barrels per day to 1.5 million barrels per day excluding condensate.
“We have maintained production levels within the OPEC quota while setting our sights on surpassing these limits.
“Bureaucratic hurdles in licensing and regulation have been dislodged in accordance with the Petroleum Industry Act (PIA), fostering a more streamlined operational environment.
“Additionally, we have fostered cohesion among various agencies and stakeholders, maximizing our production capabilities”, he added.
Lokpobiri noted that the mechanical completion of the Port Harcourt Refinery Company was a milestone achievement, with refining operations set to commence within the next quarter, adding that similar advancements are underway for the Warri and Kaduna refineries, aimed at supplying petroleum products domestically and to the Sub-Saharan market, thus eliminating the need for imports.
He revealed that “in collaboration with security agencies and host communities, we have tackled the menace of oil facility vandalism and crude oil theft. Ensuring a steady supply of petroleum products without scarcity has been a priority, achieved through our work with NNPC, NMDPRA, and other agencies”.
The Minister averred that he also addressed critical issues such as subsidy removal and the sustainable supply of petroleum products, emphasizing that scarcity is now a thing of the past.
“Once our refineries, including modular and private monolithic refineries, become operational, we will cease importing petroleum products, thereby strengthening the naira. This is merely the beginning”, Lokpobiri said.
He pointed out that one of the administration’s notable successes is the restoration of investor confidence, particularly among International Oil Companies (IOCs), many of whom, he disclosed, have recommitted to investing more in Nigeria’s petroleum sector.
“We are driving towards attracting investments exceeding $20 billion in the coming years, recognizing that our energy sector is pivotal to addressing our immediate economic challenges. Our commitment to actualizing this vision remains steadfast”, he assured.
