Abuja: The African Petroleum Producers' Organisation (APPO) has identified lack of finance, technological infrastructure, and foreign over-dependency as critical challenges facing the African energy markets integration. Dr. Farouk Omar, Secretary-General of APPO, highlighted these issues during the Africa Gas Innovation Summit (AGIS) 2025 held in Abuja.
According to News Agency of Nigeria, Omar emphasized that infrastructure, such as pipelines, is central to the development of the energy markets. The summit, hosted by the Society of Petroleum Engineers (SPE), Nigeria Council, in collaboration with the Petroleum Technology Development Fund (PTDF), carried the theme 'Building a Resilient Africa Gas Economy through Innovation and Collaboration.' Omar expressed that addressing these challenges would better prepare Africa for global gas market integration, reducing dependence on foreign technology and expertise.
To tackle the finance gap, APPO has partnered with Afrexim Bank to fund the Africa Energy Bank (AEB), headquartered in Abuja. Omar stated that legally, the bank is now operational and will soon be inaugurated. Plans are in place to have an international treaty in force with the signing and ratification of the establishment agreement and charter by the minimum number of APPO member countries. The organization has also begun advertising for the position of the bank president, with more positions to be announced.
Omar stressed the importance of pooling resources from member countries, both public and private, to establish regional centers of excellence in the oil and gas industry. He criticized the current practice where countries pursue technology acquisition and capacity development individually, advocating for a collective approach to achieve breakthrough research and innovation.
Furthermore, APPO has joined forces with the Central Africa Business Energy Forum (CABEF) to create a comprehensive network of pipelines linking the 11 Central African States by gas, products, and crude oil. Omar noted that documents have been agreed upon with CABEF and the Central African Economic Community (CEMAC) for presentation at the next summit of CEMAC heads of state.
During his keynote speech titled 'Shaping Africa's Gas Sector for Global Integration,' Omar urged African nations to focus on true interdependence, emphasizing that it can only occur among equals or near equals. He criticized the practice of exporting energy for foreign exchange to purchase foreign goods and services, highlighting the continent's challenge of providing access to modern energy for its population.
Dr. Amina Danmadami, Chairperson of SPE, Nigeria Council, addressed the summit, describing it as a strategic convergence aimed at unlocking Africa's gas resources potential. Danmadami pointed out that Nigeria, despite abundant reserves, must overcome challenges of infrastructure gaps, fragmented markets, underinvestment, and policy uncertainties. The AGIS 2025 aims to showcase strategies such as digitalization, infrastructure modernization, and regional integration to position Africa as a global gas powerhouse. The SPE plans to document and transmit key recommendations from the summit to policy and industry stakeholders to ensure lasting impact.