Invest in Nigeria Dev’t Bank, FG urges European Union

►FG invited the EU,to invest in the proposed Nigeria Dev’t Bank through the union’s development financing outfit.
►Amb. Bashir Yuguda, gave the invitation at a meeting with a delegation of the European Union(EU).


Federal Government has invited the European Union, EU, to invest in the proposed Nigeria Development Bank through the union’s development financing outfit, the European Investment Bank, EIB.

The Minister of State for Finance, Amb. Bashir Yuguda, gave the invitation at a meeting with a delegation of the EU, Ambassador to Nigeria, Mr. Michel Arrion, ibn Abuja, at the weekend.

The minister told the delegation that the federal government was establishing the bank with a view to making cheap, long-term funds available to the Small and Medium Enterprises, SME, to boost productivity in that sub-sector of the economy.

His words, “we are developing a whole sale development bank in Nigeria. The idea of the bank is to give long term financing to SMEs and increase their source of borrowing. We did a study of the informal sector which showed that the sector constituted 45 percent of our GDP.

“We have a firm belief that if we are able to increase their access to funds especially long term, that will go a long way in increasing the GDP of this country and integrating them into the formal sector of the economy.”

Amb. Yuguda disclosed that the bank was already attracting interests among development partners and that the World Bank, for instance, has committed $500 million in the it and that the EU bank should also key into it.

He added, “we know that EIB has been helping Nigeria banks. We are also aware that before they grant any facility to any bank in Nigeria they would normally seek for authorization through your office”.

The Minister explained that the aim was to boost the growth of the real sector by ensuring long term financing and drastically cutting down interest rate, adding that the Federal government would soon be embarking on a road-show to some specific countries to raise more capital.

As Minister of National of planning, Amb. Yuguda earlier this year brokered the deal for the EU’s grant of 512 million Euros (about N112 billion) towards supporting agriculture and rural development in the north, as well as, electricity and governance nationwide further welcomed Arrion’s request for EU to boost its support to the Presidential Initiative for the North-East (PINE) in the rebuilding of the North East zone.

Speaking further he said: “ for us in the Federal Ministry of Finance, we are handling the safe school initiative which is a very big programme. We appreciate your concern in this regard and will be prepared to provide the necessary support to ensure that your efforts are in tandem with the Presidential intervention programme.”

The EU envoy had earlier hinted that EIB had been involved with development activities in African nations such as Cote d’Ivoire and Senegal as a financier and would like to fund long-term projects in Nigeria.