The federal government says Nigeria has won its bid to host the headquarters of the $5 billion Africa Energy Bank (AEB).

In a statement on Thursday, Heineken Lokpobiri, minister of state for petroleum resources (oil), described the development as a testament to the country’s leadership and commitment to the energy sector.

The decision, reached at an extraordinary meeting of the Council of Ministers of the African Petroleum Producers Organization (APPO), places Nigeria at the forefront of Africa’s energy future, Lokpobiri said.

“As the Minister for Petroleum Resources[Oil], I am incredibly proud of this achievement. The African Energy Bank will be a cornerstone for financing and advancing energy projects across Africa, promoting innovation, sustainability, and economic growth,” the statement reads.

“This is a remarkable victory for Nigeria and the entire African continent. It symbolizes our collective efforts to harness and develop our rich energy resources for a brighter, more sustainable future.

“Thank you to everyone who made this possible. Together, we are shaping the future of energy in Africa, starting right here in Nigeria!”

In March, Nigeria won the bid as the preferred host nation despite competing against Algeria, Benin, Ghana, Ivory Coast, and South Africa. 

The proposed AEB, which will focus investment in oil and gas projects across the continent, plans to start operations later this year with an initial $5 billion authorised capital base.

In November last year, the African Export-Import Bank (Afreximbank) had the African Energy Bank would be inaugurated in June 2024 to mitigate the crisis in the continent’s energy sector.

The lender said it had partnered with over 700 banks in Africa and its partners to chart a profitable pathway for the African energy sector.