The Export-Import Bank of India (Exim Bank) and Nigeria signed a US $100-million line of credit agreement on May 22, for the financing of three energy projects in the provision of electricity transformers to solar electrification in rural areas.

The agreement was signed on the sidelines of the African Development Bank's Annual Meeting in Kigali, Rwanda.

Speaking after the signing, the Chairman and Managing Director of Exim Bank, Yaduvendra Mathur, said, "Exim Bank is very proud to engage with Nigeria in the area of electricity development. We are looking forward to further corporation in different sectors."

The US $100 million will be spent on distribution of transformers for 96 communities in three senatorial zones of Enugu State, in the eastern part of Nigeria; a substation including solar mini grid electrification and solar street lighting in the state of Kaduna to the north, as well as the construction of two 26 MW gas-based power plants in the cross river state in the Delta Region of the southern part of Nigeria.

Nigeria's Minister of Finance, Ngozi Okonjo-Iweala, said the agreement had been in negotiations for seven years and that its implementation signifies a great shift in the relationship between Exim Bank and Nigeria.

"We are more interested in having a programmatic type of discussion; so that we tell you the areas that we feel we want to work with you. This is a beginning," she said.

Under the new Line of Credit, Exim Bank will reimburse 100% of the contract value to the Indian exporters upfront upon the shipment of equipment and goods as well as the provision of services.

Major export items from India to Nigeria are transport equipment, machinery and instruments, pharmaceuticals, rice and electronic goods.

The agreement with Nigeria brings the number of credit lines made by India Exim Bank to 191 covering 76 countries in Africa, Asia, Latin America, Europe, and Oceania and with a total commitment of over US $10 billion.