A brewing dispute among African nations has thrown into question the location of Africa’s inaugural energy bank, with Nigeria encountering fierce resistance from at least six countries on the continent.
The proposed financial institution with an initial capital of $5 billion, aims to bolster investment in the oil and gas sector across Africa.
Ghana, Egypt, South Africa, Benin Republic, Cote d’Ivoire, and Algeria have emerged as formidable opponents to Nigeria’s bid for hosting rights.
These nations have actively lobbied decision-makers who will ultimately determine the bank’s headquarters.
The disagreement underscores the significance attached to the financial institution’s location, with each nation vying to secure economic advantages.
The contentious deliberations have attracted the participation of key stakeholders, including Angola, Cameroon, the Republic of Congo, and Equatorial Guinea, among others.
The establishment of the energy bank is seen as crucial to the future of Africa’s oil and gas industry, especially amid declining Western investments in fossil fuels.
The proposed bank aims to bridge the funding gap plaguing the sector, which is vital for Nigeria’s ambition to tap into its vast oil reserves.
While Nigeria’s leadership in the African Petroleum Producers Association (APPO) would seemingly provide leverage, internal and external dynamics complicate its bid.
Nigeria’s APPO representative has highlighted the need for proactive engagement and commitment, cautioning against complacency in the pursuit of hosting rights.
The decision on the bank’s location is expected to be reached by the end of March, emphasizing the urgency for Nigeria and other contenders to articulate compelling arguments and fulfill stringent criteria set by APPO.
The outcome will not only shape the future of Africa’s energy landscape but also reflect the continent’s evolving geopolitical dynamics.