Africa has moved closer to achieving energy sovereignty with the official handover of the African Energy Bank (AEB). The bank is a landmark financial institution created to mobilize domestic capital for the continent’s energy needs and strengthen Africa’s energy value chains.

The handover ceremony took place on the sidelines of the Nigeria International Energy Summit (NIES) in Abuja. Policymakers, industry leaders and development partners are describing the moment as a turning point in Africa’s quest to finance and control its own energy future.

The African Energy Bank is jointly established by African Petroleum Producers’ Organization (APPO) member states and the African Export-Import Bank (Afreximbank). It is designed to reduce Africa’s dependence on foreign financing while aligning energy investments with the continent’s long-term development priorities.

Officials at the event said the bank will serve as a stabilizing anchor for Africa’s energy sector, which has long been exposed to the volatility of global energy finance. The issue has often resulted in delayed projects and uncertain investment flows.

Nigeria, one of the key drivers of the initiative, confirmed that it has fulfilled and exceeded its financial commitment to the bank, clearing the way for the institution to become fully operational.

“We have paid off our own part and even exceeded our contribution,” a Nigerian official said, noting that work is ongoing with Afreximbank and technical consultants to ensure that all requirements are in place for the bank to commence operations.

The AEB is expected to deploy targeted financial instruments to support projects across the energy value chain. This includes exploration and production, refining, renewable energy integration, gas infrastructure and local content development.

By doing so, the bank aims to ensure that Africa’s vast natural resources are translated into tangible economic value, job creation and industrial growth.

Speakers at the ceremony stressed that the bank goes beyond conventional financing, positioning it as a strategic tool for economic independence and long-term energy security. “This is not just a financial institution,” one speaker said. “It is a cornerstone of Africa’s determination to finance, produce and sustain its own energy future.”