The African Development Bank on Tuesday signed an agreement to provide two sovereign-guaranteed multi-tranche lines of credit of $700m (N112bn) to the Bank of Industry and the Nigerian Export-Import Bank.
Of the amount, BoI will get $500m (N80bn), while the balance of $200m (N32bn) will go to NEXIM bank.
A statement signed by the Head, Corporate Communication Department, NEXIM Bank Mr. Chinedu Moghalu, said the amount would be used to support the modernisation and expansion of export-oriented Small and Medium-scale Enterprises.
Moghalu said, “The lines of credit will allow local SMEs to be more competitive, scale up their operations and ultimately create more jobs in Nigeria. The LoCs will include a technical assistance package to strengthen institutional capacity at both BoI and NEXIM, as well as at their SME clients.
“Through this integrated financing package, the AfDB is supporting Nigeria’s efforts towards a more diversified economy away from oil and gas.”
The statement said the agreement would also supply multi-sector financing to address the challenges that SMEs faced in accessing finance in the country.