Minister of State for Petroleum Resources Dr. Ibe Kachikwu has said Nigeria will mobilize other oil and gas producers in Africa under the umbrella of the African Petroleum Producers Organization (APPO) to raise up to $2 billion to finance energy projects across the continent.
He explained that member countries of APPO were already looking to expand the role of an existing financing body in the continent and would rename it the African Energy Investment Corporation to drive its goals of financing continent-wide energy projects.
According to him, “The whole idea is to mobilize between $1 billion and $2 billion of resources to fund all the essentials necessary for us to properly collaborate,” while noting that most African countries operated in silos, a strategy that needs to be restructured.
Kachikwu, while speaking at the ongoing Nigerian International Petroleum Summit (NIPS) in Abuja, said, “Today, most African countries are silos, you build your own refineries, plants, gas turbines etc. If we could extend hands of infrastructural relationship across Africa, begin to protect the African market, we would have taken a huge step not only in the development of Africa, but to the stabilisation of independent countries.”
He further listed challenges to the international oil market to include issues such as shale gas, oil pricing, investment limitation, among others.
He stressed that unless African countries get their policies, market place collaborative mechanisms and infrastructure right, they would face a huge amount of challenge in the competition for the scarce resources and capital available for energy projects.