The European Investment Bank and United Bank for Africa (UBA) have agreed a new EUR 60 million lending programme to support private sector investment across Nigeria. This represents the EIB’s largest ever loan to UBA and will allow UBA to provide longer term loans than currently available to private companies in Nigeria.
The
new private sector lending programme was formally agreed on the side-lines of
the World Bank Annual Meetings in Washington DC by Ambroise Fayolle, Vice
President of the European Investment Bank and Kennedy Uzoka, Group Managing
Director and Sola Yomi-Ajayi. Head of Global Financial Institutions at UBA.
“Private
sector investment is crucial for creating jobs and ensuring sustainable
economic growth. The European Investment Bank is committed to unlocking
investment across Africa and we are pleased to build on past success to
strengthen our partnership with UBA that will benefit projects across Nigeria.”
said Ambroise Fayolle, Vice President of the European Investment Bank.
Speaking
at the signing ceremony, Kennedy Uzoka, Group Managing Director, UBA said “Our
growing partnership with the European Investment Bank underlines our long term
objective of facilitating the development and growth of African businesses.
This facility will enable UBA bridge critical financing gaps for Nigerian
companies and deepen our capacity to support their growth aspirations in the
local and international market place”
Ambassador
Michel Arrion, Head of the European Union Delegation to Nigeria and ECOWAS,
described the programme as an example of the catalytic role the EU and its
institutions like the EIB are playing to support Nigeria's economic
development. "We look forward to more fruitful partnerships with Nigeria,
and particularly with the private sector, which remains the engine of economic
growth".
This
represents the first Nigerian operation under the European Investment Bank’s
new dedicated Nigeria Private Enterprise Investment Facility, a wider million
lending scheme intended to support private sector investment in the country.
Under the new initiative private sector entrepreneurs and companies will be
able to use loans with a longer tenor than traditionally available to invest
and expand activities across a range of sectors.
The
new loan will also fund capital expenditure by UBA to strengthen their support
for private investment, through expansion of their branch network and improving
information technology.
The
European Investment Bank has supported infrastructure and private sector
investment in Nigeria since 1978.
The
European Investment Bank is the world’s largest international public bank and
over the last five years has provided EUR 12.8 billion for investment across
Africa.
Background information:
The
European Investment Bank (EIB) is
the long-term lending institution of the European Union owned by its Member
States. It makes long-term finance available for sound investment in order to
contribute towards EU policy goals.
United Bank for Africa Plc is one of Africa's leading financial institutions,
with operations in 19 African countries and three global financial centers:
London, Paris and New York.
From
a single country operation in Nigeria, UBA has evolved into a Pan-African of
banking and related financial services to more than 11 million customers
through diverse channels globally.
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Business