Development Bank
Minister of Finance, Kemi Adeosun

The Federal Government is set to start the Development Bank in Nigeria after raising $1.3bn. The government reached an agreement with the World Bank Group and other development partners for the release of the funds.

The Minister of Finance, Mrs Kemi Adeosun, with the Governor of Central Bank of Nigeria (CBN), declared this at a joint press briefing in Washington on Sunday.

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The briefing was to announce the achievements of the Nigerian delegates at the 2016 IMF/World Bank Annual General Meetings.

Adeosun stated that creating the Development Bank of Nigeria was not a duplication of duty of any organisation, especially the Bank of Industry, because it was targeted at Small and Medium Enterprises.

Adeosun said that the Nigerian delegates were also able to secure investments into the 500 million dollars irrigation projects covering the Bakalori-Kano River and Hadejia Valley Irrigation.

In the power sector, she said that the country had secured commitments from Japan International Co-operation Agency to invest in the Jebba Hydro project and also facilitate trade and investment in Nigeria.

Commenting on illicit financial flows, Adeosun said that they had some high level discussions with a number of countries Nigerian money are domiciled’’.

With regards to Nigeria’s foreign loans, the minister said that the country would once again patronise Eurobonds.

She said the government has spoken to many lenders now that the market is attractive. This would lessen the pressure on the domestic market.

The minister also disclosed that the Federal Government would consider restructuring, reallocating or even cancelling irredeemable project components.

On his part, the Governor of CBN, Mr Godwin Emefiele, commented on the allegation that there was disharmony between fiscal and monetary authorities on interest rates.

He said when people are able to access loans at low interest rates, it helps improve growth, reduce unemployment, and boost industrial capacity.