LAGOS (Sundiata Post) – The Board of Directors of the African Development Bank Group (AfDB) through its private sector window has approved a $150-million line of credit (LOC) to United Bank for Africa Plc (UBA). In 2009, the AfDB provided emergency liquidity facilities to address the surging liquidity constraints, which helped trade finance and other lending activities of UBA contributing to key economic sectors, particularly during the financial crisis.
The LOC will help finance infrastructure and SME projects, including women-owned enterprises in Nigeria. It will support infrastructure development, particularly the power sector, which is a major constraint for Nigeria’s economic diversification and also inclusive growth. The power sector financing gap in Nigeria remains enormous and almost 50% of its population does not have access to electricity.
By leveraging UBA’s branch network, the LOC will also scale up lending to SMEs and women enterprises in both urban and rural areas to create more jobs and to promote inclusive growth for Nigeria’s economy by stimulating various sectors such as manufacturing, construction, agriculture, education and services.