Federal Govt. Approves N200b Loan For Bank Of Industry
The Nigerian leader signed a bill on Monday in London (image courtesy: State House)

The Federal Executive Council (FEC) has approved the issuance of a Sovereign Guarantee N200bn loan to the Bank of Industry (BoI), Concise News has learned.

Concise News understands that the money is from the Credit Suisse AG London Branch and a syndicate of international lenders.

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Nigeria’s Minister of State, Budget and National Planning, Clement Agba, revealed this in Abuja on Wednesday after the FEC meeting.

According to Agba, the loan was meant to bankroll major industrialization projects and micro-small and medium enterprises value chains in Nigeria for up to a five-year tenure at affordable rates.

He noted that the rates are single-digit, stating that the guarantor of the loan, to be executed through the Ministry of Finance, Budget and National Planning, shall be the Federal Republic of Nigeria.

“We do believe that about 1.2 million jobs will be created through this facility; increase the income of farming communities and promote the inclusion of SMEs and smallholder producers in the industrial value chain and the deployment of transportation infrastructure that connect farming communities to processors and market,” he said.

“The loan will be swapped to Naira by the CBN to mitigate the foreign exchange risk and the fund will, therefore, be available to Nigerian enterprises at a more affordable rate and in local currency.”