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Press Release
Published October 12, 2016
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Nigeria in $1.3bn development bank deal

Date: October 12, 2016
Categories: Government Finance
Keywords: World Bank, Nigeria, DBN, Development Bank

Nigeria has reached a deal with the World Bank Group and other partners for the release of $1.3 billion to establish its development bank.

Finance minister Kemi Adeosun said the proposed Development Bank of Nigeria (DBN) was not a duplication of any other institution in the industry.

Ms Adeosun said the country needed to get the money into the hands of smaller businesses that make 50 per cent of the GDP.

Low cost loans

The focus of DBN, she said, was to spur small and medium enterprises by giving them low cost loans.

"We have been able to crowd in money to the tune of $1.3 billion from the World Bank, African Development Bank (AfDB) and the European Investment Bank.

"We have made a lot of progress now and ready to take off.’’

The minister said Nigeria had already advertised for the bank's management positions.

Corrupt practices

She also disclosed that Nigerian had also been able to secure investments into the $500 million irrigation projects covering the Bakalori-Kano River and Hadejia Valley Irrigation.

In the power sector, said the minister, the country had secured commitments from the Japan International Cooperation Agency to invest in the Jebba Hydro project and also facilitate trade and local investment.

Commenting on illicit financial flows, Ms Adeosun said the government had held some high level discussions with a number of countries ‘’where we have Nigerian money domiciled’’.

The minister

"When we talk about illicit financial flows there is a number of issues involved- those from corrupt practices, tax evasion, tax avoidance and those who underpay tax.

"But we are working hard to bring them back to the country,” she said.

The minister also disclosed that the Federal Government would “consider restructuring, reallocating or even cancelling irredeemable project components.

"We would strengthen our implementation capacity, including our capacity for monitoring and evaluation."

Re-disseminated by The Asian Banker from Africa Review