The Federal Government of Nigeria has sealed a Memorandum of Understanding (MoU) with the African Export-Import Bank (Afreximbank) seeking to establish a $3 billion Nigeria Industrialization Financing Facility for an industrial park and light manufacturing.
The West African nation’s Minister of Industry, Trade and Investment, Dr. Doris Udoka-Anite, signed the deal on the sidelines of the just concluded Afreximbank Annual Meetings (AAM) 2024 in Nassau, The Bahamas.
The deal is expected to lead to the creation of special economic and agro-processing zones across the country and create 20,000 jobs.
It would also support the development of an automotive sector as well as the Compressed Natural Gas (CNG) value chain to better enable the automotive and transport sector in the country.
The package would further cover the technical and financing support for the diaspora investment fund framework.
Furthermore, the agreement also signified the partnership between the ministry, Arise IIP and Afreximbank to revamp the cotton, apparel and textile value chain in Nigeria.
“This is going to cut across the cotton belt in Nigeria and also create a lot of jobs in Nigeria’s core strength in terms of cotton and textile production which used to be the pride of the country 1980s and 1990s. So, we are bringing it back and working together to get that done,” Afreximbank announced.
The partnership also reinforces the commitment of the present administration to drive economic diversification.
In addition, it would help expand the Afreximbank’s Arise IIP/FMITI partnership as well as support state-wide investment projects in technical viability and a development of healthcare value chain.
This comes after the World Bank approved a total sum of N2.25 billion for Nigeria to enable the federal government to sustain its reform momentum, accelerate non-oil resource mobilisation, and support poor Nigerians.
In two separate financing interventions, the bank had announced $1.5 billion for the country’s Reforms for Economic Stabilisation to Enable Transformation (RESET) Development Policy Financing Programme (DPF), and $750 million for the Accelerating Resource Mobilisation Reforms (ARMOR) Programme-for-Results (PforR).
The World Bank had said the combined package provided immediate financial and technical support to the country’s urgent efforts to stabilise the economy and scale up support to the poor and most economically at risk.
