EIB, AfDB Invest $70m in Agriculture, Business in Nigeria
AfDB Head Office, Abuja. Photo Credit: newtelegraphonline.com
The European Investment Bank, EIB and the African Development Bank, AfDB have sealed a deal to to fund the establishment of the new Development Bank of Nigeria (DBN) to reinforce agriculture investment and loaning for business in Nigeria to the tune of $70 million.
EIB likewise settled a $20 million equity stake in the new financing institution, alongside US $50 million value support from the African Development Bank.
According to the Managing Director of the Development Bank of Nigeria, Tony Okpanachi, “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.” He explained.
The agreement was reached by EIB’s Anne-Cécile Auguin and AfDB’a Emeka Anuforo at the World Bank 2018 Spring Meetings in Washington DC.
The Vice-President of the European Investment Bank (EIB) Ambroise Fayolle, also “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,” he said.
The Head of the European Union Delegation to Nigeria and the Economic Community of West African States (ECOWAS) Ambassador Ketil Karlsen, emphasized the responsibilities of the EU in 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.” He said.
