AfDB grants $350m loan to two Nigerian banks
The funds will support local enterprises involved in import-export activity.The African Development Bank (AfDB) has approved two Trade Finance Loans to two Nigerian banks in a bid to support local enterprises involved in import-export activity.
First Bank of Nigeria (FBN) will receive $300 million (€270 million) and FSDH Merchant Bank Nigeria (FSDH), $50 million.
The AfDB said the two facilities are part of broader efforts to provide support to the Nigerian economy at a time of falling commodity prices, which has caused shortages in foreign currency supply and led to unmet demand for trade finance instruments.
It added this will help address critical market demand for trade finance by supporting sectors such as agri-business, chemicals, construction, engineering, manufacturing and non-traditional exports.
In addition, the facilities are expected to foster financial sector development, enhance regional integration, contributing to increased government revenue generation.
The AfDB forecasts that the interventions will facilitate about $2.5 billion of export-import related activity over a 3.5-year period.