TheCable

Timipre Sylva, minister of state for petroleum resources, has called for the establishment of an African energy bank to boost investments in the oil and gas sector.

Sylva made the request during the visit of Gabriel Lima, Equatorial Guinea hydrocarbon minister, in Abuja on Monday.

He said the need for an energy bank is important due to developed nations phasing out funding for hydrocarbon-directed investments in a move for cleaner sources (renewable) of energy.

He explained that the bank would be the only alternative available to African countries to explore the vast hydrocarbon resources in the continent.

He also said the call for an energy bank is heightened by the passage of the Petroleum Industry Act (PIA), adding that the Act will open up the oil and gas sector for huge investments going forward.

“The PIA is a watershed moment for us in Nigeria. This is the time for us to get out of Nigeria to market this investment environment. We must not go out of Africa to attract investments. We must set up structures to fund our system,” Sylva said.

“If we insist on the exploration of our oil and gas reserves when the world is cutting down on investments in the sector, we must set a financial institution, an African Energy Bank, to develop the oil and gas sector.

“If we go into more exploration in Africa, we will find more oil and gas and must we leave it under the ground because the other countries are racing for renewable energy?

“None of us can grow without each other. It is not all the time that we run to Europe or America, or elsewhere for support. We need to keep talking, and we need mutual cooperation to solve our problem. We can achieve this under African Petroleum Producers’ Organisation’s (APPO).”

In June, Yemi Osinbajo said Nigeria will continue its frontline advocacy — sustaining funding for gas and fossil fuel projects in the country and other developing nations during the global transition to net-zero emissions.

With this, he said sub-Saharan Africa (SSA) requires an annual investment of $40 billion to develop and implement a robust energy transition plan.