The African Development Bank (AfDB) has signed two agreements for the provision of two sovereign-guaranteed multi-tranche Lines of Credits (LOCs) with the Bank of Industry (BOI) and the Nigerian Export-Import Bank (NEXIM). Under the programme that is designed to support export-oriented small and medium enterprises, boost job creation and diversify Nigeria’s economy, a $500 million Line of Credit was approved for the Bank of Industry while a $200 million Line of Credit was extended to the Nigerian Export-Import Bank.
While Dr. Ousmane Dore who is the African Development Bank’s Resident Representative in Nigeria signed for AfDB, the Managing Director and Chief Executive of the BOI, Ms Evelyn Oputu and Mr Roberts Orya, the Managing Director and Chief Executive of NEXIM signed on behalf of their respective institutions. The signing ceremony took place at the Bank of Industry’s Corporate Office in Abuja.
The two Lines of Credit include technical assistance packages to strengthen institutional capacity at both BOI and NEXIM as well as at their SME customers.
The facilities are meant to support the establishment, modernization and expansion of export-oriented small and medium enterprises’ (SMEs) that have high employment generation potentials. The lines of credit would also allow SME beneficiaries to be more competitive, scale up their operations and ultimately create more jobs in Nigeria. According to Dr Ousmane Dore of AfDB, the combined program will contribute to mobilize significant financial resources for Nigerian export-oriented SMEs, ultimately contributing to economic development, employment opportunities, foreign exchange and regional trade integration. BOI’s Managing Director and CEO, Ms Evelyn Oputu stated that the $500 million Line of Credit would enable BOI lend more support to the underserved and those at the bottom of the pyramid under its paradigm shift initiative. NEXIM’s Managing Director and CEO indicated that the facility would enhance the bank’s ability to support export based SMEs in line with its mandate.