The African Development Bank (AfDB) yesterday signed an agreement that would see it providing two sovereign-guaranteed multi-tranche lines of credit (LoCs) of $500 and $200 million to the Bank of Industry (BOI) and the Nigerian Export-Import Bank (NEXIM) respectively.
The LoCs is to enable the banks support for export-oriented small and medium enterprises' (SMEs) modernisation and expansion and will include a technical assistance package to strengthen institutional capacity at both BOI and NEXIM as well as their SME clients.
The facility will also supply multi-sector financing to address the challenge that SMEs face in accessing finance in the country.Hence,export-oriented SMEs would be able to become more competitive, scale up their operations, and generate employment in the Nigerian productive sectors.
Through this integrated financing package, the AfDB is demonstrating its support to Nigeria's efforts towards a more diversified economy away from oil and gas.
Managing Director, NEXIM, Mr. Robert Orya, described the facility as a great opportunity for NEXIM to make available concessional long-term funding in pursuit of its goal of enhancing value-added exports and bolstering the capacity of SMEs for job creation and foreign exchange earnings
"Thanks to AfDB's support through this programme, NEXIM seeks important economic development achievements, including approximately 55,000 new jobs for its SME clients, USD 1.6 billion in foreign exchange and an overall contribution of almost 7 per cent to non-oil exports, including a 10 per cent share in Economic Community of West African States (ECOWAS) exports. This facility will provide a great opportunity for NEXIM to make available concessional long-term funding in pursuance of its strategic objectives of enhancing value-added exports and bolstering the capacity of SMEs for job creation and foreign exchange earnings," he said.