The African Development Bank, AfDB, has approved $350million loans to First Bank of Nigeria and FSDH Merchant Bank Nigeria to boost import-export activity of local enterprises.
AfDB said the two facilities are part of its broader efforts to provide counter cyclical support to the economy at a time of falling commodity prices.
The continental lender said the plunge had caused shortages in foreign currency supply and led to unmet demand for trade finance instruments to support on-going economic transitions.
The Nigeria Country Field Office in Abuja, on Wednesday, August 24, said that the facilities will support local enterprises involved in import-export activity.
“The loans will help to address critical market demand for trade finance and dollar liquidity by supporting vital economic sectors.”
“Such sectors include agri-business, chemicals, construction and engineering, food processing, manufacturing and non-traditional exports.
It added that the loan facility will foster financial sector development, enhance regional integration, contributing to increased government revenue generation at a time when the Nigerian economy is facing fiscal pressures and foreign currency liquidity challenges.