FG approves $1.3bn take-off grant for NDB

The Federal Executive Council has approved a $1.3bn loan credit facility for the commencement of the Development Bank of Nigeria.
The approval came on the heels of a memo submitted by the Finance Minister, Kemi Adeosun, seeking the council’s ratification on the loan’s request.
Adeosun, who briefed State House correspondents on the outcome of FEC meeting led by President Muhammadu Buhari, said $500 millio of the amount would come from the World Bank.
According to the minister, another $450 million is expected from the African Development Bank, and $200 million from KFW, a financial corporation.
Adeosun said another $130 million would come from the French Development Agency to make up the $1.3 billionn earmarked for the commencement of the bank.
She said, “As you know, the Development Bank of Nigeria recently received its licence and is being funded by some long-term loans from some of our development partners.
“So, the World Bank had given us $500 million repayable over 21 years and all of this is at a concessional rate.
“To access this money, we are ready to disburse but there are two requirements that we need to make and one of them is the legal opinion by the Attorney-General of the Federation and the other is the National Assembly approval.
“Before it goes to the National Assembly, it needs to be approved by FEC and the FEC simply approved today that these loan requests should go to the National Assembly for approval.
“So we can access this money and the Development Bank of Nigeria can take off fully as it is expected to transform Financing of our MSMEs sector.
“The council enthusiastically approved these facilities which are on long term, meaning that the DBN will be able to lend to our MSMEs over much longer periods and at much lower rates.” She explained.