Nigeria receives 60% share of $30bn Afreximbank’s oil, gas funding

NIGERIA, Feb. 29 – The African Export-Import Bank (Afrexim bank) on Wednesday, made it public that it has become the largest financier of oil and gas projects in Africa.

The bank made known that it is investing $30bn in industry projects, with Nigeria receiving 60 % notwithstanding reduced global funding for hydrocarbon ventures in Africa

Prof Benedict Oramah, the President of Afrexim bank,  said Africa has to find innovative solutions to its huge energy deficit.

Oramah was speaking at the National Oil Companies Forum at the ongoing Nigeria International Energy Summit in Abuja on Wednesday.

Represented by Mr. Haytham ElMaayergi, Executive Vice President, Global Trade Bank, Prof. Oramah lamented that it was incomprehensible that in a continent with abundant oil, gas, solar hydro resources, the bulk of the population still lacks access to reliable and affordable energy.

He threw light on the continent lack of extensive traditional energy infrastructure, but stressed that this presents an opportunity for leapfrogging in a more efficient way to renewable technology.

“Our aspiration in the area of energy security and energy transition will remain aspiration unless we have access to adequate funding resources that we control. With a lot of international banks withdrawing funding out of the oil and gas sector, the investment in the industry has become severely limited with the corresponding impact on exploration and production.

“Afreximbank has intervened in a big way, quickly becoming the largest financier of oil and gas deals in the continent. The support provided to the sector by the bank is in excess of 30 billion US dollars. Nigeria has been one of the largest beneficiaries accounting for almost 60 percent of the total funding of the sector.

“And it’s important to the point that afrexim bank has been able to make those modest contributions in the oil and gas sector because the bank is predominantly African in ownership and control”, he stated.

Oramah disclosed that Afrexim bank would be managing the proposed Africa Energy Bank to ensure its best chance of success.

“The strategic goal of the Africa Energy Bank is to play a leadership role in shaping the energy landscape in Africa through strategic partnership with proven African and international financial institutions and investors and also to provide sustainable financing in this area of the oil and gas sector.

“The Africa energy bank will need considerable support to get off the ground. We will need support from member states to achieve the level of capitalization that is adequate to support the energy sector”, Oramah added.