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Uba, Afdb Sign $150m Loan Agreement

Source: thewillnigeria.com

BEVERLY HILLS, December 01, (THEWILL) – The African Development Bank Group (AfDB) and Nigeria's United Bank for Africa (UBA) have signed a $150 million loan agreement to finance Small and Medium Scale enterprises (SMEs).

The loan was initiated to also finance infrastructure and women-owned enterprises in Nigeria, AfDB said in its news release.

“The Fund will support development of productive sectors of the economy; particularly the power sector, infrastructure, women owned enterprises as well as SMEs,” it stated.

“This line of credit comes at an opportune time to boost efforts at reducing the huge power sector-financing deficit that is limiting energy supply.

“It is to complement our support to medium and small scale enterprises while also promoting gender diversification across the value chain,” Kennedy Uzoka, UBA Group Managing Director, said on Thursday in Lagos.

NAN recalls that AfDB has remained UBA's long-term partner in its financing activities.

In 2009, AfDB provided liquidity facilities to deepen its trade finance and other lending activities, thus contributing to key economic sectors of the Nigerian economy, particularly at a time when the economy requires critical funding to stimulate growth and employment.

By leveraging UBA's branch network, the Line of Credit will also scale up lending to SMEs and women enterprises in both urban and rural areas to create more jobs and promote inclusive growth for Nigeria's economy by stimulating the various sectors such as manufacturing, construction, agriculture, education and services.

Story by Oputah David