– The Sun News
World Bank Spring Meetings 2018 EIB financing Nigeria

EIB, AfDB to support agriculture, business in Nigeria with $70 million

Juliana Taiwo-Obalonye, Washington DC

The European Investment Bank (EIB) and the African Development Bank (AfDB) have agreed to support the creation of the new Development Bank of Nigeria (DBN) to strengthen lending for business and agriculture investment in the country to the tune of $70 million.

This was contained in a statement made available to journalists at the on going 2018 Spring Meetings in Washington DC by EIB’s Anne-Cécile Auguin and AfDB’a Emeka Anuforo.

The European Investment Bank has finalized a US $20 million equity stake in the new financing institution, alongside US $50 million equity participation from the African Development Bank.

At present, new investment essential for companies to expand and create jobs is hindered by limited access to commercial banks. The DBN estimates that only 5% of the 37 million entrepreneurs and small businesses in Nigeria that contribute to 50% of GDP can access credit in the financial system.

The Federal Government of Nigeria had created the Development Bank of Nigeria to address financing challenges hindering private sector investment in the country. The Bank is called to play an important and catalytic role in providing funding and risk sharing facilities to micro, small and medium enterprises as well as small corporates.

Tony Okpanachi, Managing Director of the Development Bank of Nigeria, said:

“The Development Bank of Nigeria will overcome the funding gap in the micro-, small- and medium-scale enterprises space and help businesses unlock opportunities across Nigeria. DBN’s ambition is strengthened by the financial and technical support of international partners, including the European Investment Bank and African Development Bank. The new institution builds on international experience and uses a business model that has demonstrated proven success to enhance private-sector investment across Africa and around the world where other financing options are inadequate or absent.”

Stefan Nalletamby, Director of the Financial Sector Development Department at the African Development Bank said:

“Private sector businesses are critical to the development of the Nigerian economy as they possess huge potential for employment generation and output diversification. Nevertheless, there has been under-performance of these businesses and this has undermined their contribution to economic growth. Among the issues affecting their performance, the shortage of finance, particularly investment finance, occupies a very central position. The Development Bank of Nigeria is expected to contribute to mobilizing significant long-term financing to an important yet underserved sector with high development potential.”

Ambroise Fayolle, Vice-President of the European Investment Bank (EIB) said:

“New private sector investment is crucial to create jobs and enable business to expand and limited access to long-term financing holds back economic growth. The European Investment Bank is pleased to support the new Development Bank of Nigeria to strengthen private-sector investment in Africa’s largest economy. We look forward to continued close cooperation with Nigerian and international partners to ensure that once fully operational the new Development Bank of Nigeria can help harness the country’s economic potential.”

Ambassador Ketil Karlsen, Head of the European Union Delegation to Nigeria and the Economic Community of West African States (ECOWAS) said:

“The European Union is committed to supporting private-sector investment in Nigeria. The new backing for the Development Bank of Nigeria by both the European Investment Bank, the bank of the European Union and the African Development Bank, with 13 EU member state shareholders, will make a clear contribution to tackling the lack of access to credit by entrepreneurs and businesses across the country. With more investment, we hope to promote a vibrant economy and stimulate growth, employment and increase opportunities, especially for youth.”

Building on broad international support, other international financial institutions including the World Bank, Germany’s KfW and the French Agence française de développement (AFD) will also support the new bank alongside backing from the Federal Government of Nigeria.

Share

About author

Tokunbo David
Tokunbo David

Writer and editor.

Related Articles

1 Comment

  1. Ezekiel Okeke 19th April 2018 at 7:20 pm

    The basis of agriculture sustainability etc. in this natives territory is professional education based on 21st century advancements which will be achieved under the natives Disintegrated Republics which must be defended with the Sword in this climax of the ongoing Revolution War of the natives. African agriculture sustainability etc. basis is professional education based on 21st century advancements which will be achieved under a 21st century African structures in cooperation with Africa’s 21st century partners. This is 21st century Africa. This is 21st century world. God Is With Us!!!

Leave a reply

Your email address will not be published. Required fields are marked *

Archive

July 2018
S M T W T F S
« Jun    
1234567
891011121314
15161718192021
22232425262728
293031  

Enquiries

Take advantage of our impressive statistics, advertise your brands and products on this site. Get in touch. For print/online adverts inquires: 09070051404

EDITOR

Online Editor: Aderonke Bello
Telephone: 08189015120
Email:  [email protected]

Share