Africa Strikes Back with $19 Billion Energy Bank to End Funding Dependence

In a direct challenge to the global financial system that has sidelined Africa’s energy ambitions, the African Export-Import Bank (Afreximbank) has pledged $19 billion to capitalise the new African Energy Bank (AEB) — a homegrown institution that could mark the end of Africa’s dependence on Western oil and gas financing.

The announcement, made by Nigeria’s Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, at the Offshore Technology Conference (OTC) 2025 in Houston, signals an inflection point in the continent’s energy policy — one that centers African control over African resources.

“Funding has been weaponized. Africa cannot continue to beg for survival in a sector it fuels globally. The African Energy Bank is our answer,” Lokpobiri declared.

A Bank Built to Defy the Global Fossil Fuel Narrative

The African Energy Bank is not just another multilateral development initiative. It is a strategic countermeasure. As Western financial institutions withdraw from fossil fuel investments under climate pressure — even in regions still heavily reliant on hydrocarbons for basic energy access — African oil producers are being cornered.

Now, with $14 billion in Afreximbank’s current oil and gas exposure being transferred to the new bank, plus an additional $5 billion in start-up capital, the continent is putting its money where its survival is.

Set to be headquartered in Abuja, Nigeria, and operational within the current quarter, the bank will provide critical project finance, debt, and equity solutions to indigenous oil companies increasingly locked out of global capital markets.

“We are not denying the climate crisis,” said an Afreximbank official at the sidelines. “We’re rejecting the hypocrisy. Africa contributes the least to global emissions but pays the highest price in energy poverty.”

Western Climate Policy vs. African Reality

The move is a direct response to what many African leaders see as a growing double standard in the global climate and finance community — where developing nations are urged to abandon hydrocarbons without viable alternatives or transitional financing.

Lokpobiri didn’t mince words, even invoking geopolitics:

“They say stop producing oil, yet they keep importing it. The pressure to defund our industry is not about the climate — it’s about control.”

He welcomed the return of Donald Trump to the U.S. presidency, suggesting it may slow the “hypocritical war” against fossil fuels and allow countries like Nigeria more breathing space to develop their resources.

The Bigger Picture: Energy Sovereignty

This isn’t just about oil. The African Energy Bank represents a broader quest for energy sovereignty — a strategic imperative as Africa seeks to industrialize, electrify rural regions, and meet development goals. Over 600 million Africans still lack access to electricity.

At OTC 2025, the Nigerian delegation sent a clear message: Africa is done waiting. With ministers, regulators, and CEOs from across the region, the launch of the bank doubled as a rallying call.

Among those present:

• Ekperikpe Ekpo, Minister of State for Petroleum (Gas)
  
• Felix Ogbe, Executive Secretary, NCDMB
  
• Roland Ewubare, COO, NNPC Ltd
  
• Udobong Ntia, EVP (Upstream), NNPC
  
• John Jinapor, Ghana’s Minister of Energy and Green Transition
  
• Industry leaders from PETAN, Aradel Holdings, and more
  

The Challenge Now: Execution and African Buy-In

While the $19 billion commitment is historic, the real test lies ahead: Will African investors, pension funds, and governments rally behind the bank to match Afreximbank’s bold first step?

“We call on Africans investing abroad to bring that capital home,” Lokpobiri urged. “The African Energy Bank is not just a project — it’s a revolution.”

And if the continent responds? Africa might finally have the institution it needs to fund its future — on its own terms.