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Nigeria : $100m energy loan from India Exim bank secured by FG
Publish Date : 27-May-2014
The Federal Government has gained a $100 million line of credit agreement with Export-Import Bank of India (Exim Bank) for the backing of 3 energy projects in the provision of electricity transformers for solar electrification in rural areas.
The agreement was inked on the sidelines of the African Development Bank's Annual Meeting in Kigali, Rwanda.
The Chairman and Managing Director of Exim Bank, Yaduvendra Mathur, said, "Exim Bank is very proud to engage with Nigeria in the area of electricity development. We are looking forward to further corporation in different sectors."
The $100 million will be used on distribution of transformers for 96 communities in 3 senatorial zones of Enugu State, in the eastern part of Nigeria; a substation counting solar mini grid electrification and solar street lighting Kaduna State in the north as well as the construction of two 26MW gas-based power plants in the Cross River State in the Delta Region of the southern part of Nigeria.
Minister of Finance, Ngozi Okonjo-Iweala said that the agreement had been in negotiations for seven years and that its implementation signified a great shift in the relationship between Exim Bank and Nigeria.
He said, "We are more interested in having a programmatic type of discussion, so that we tell you the areas that we feel we want to work with you.This is a beginning".
Exim Bank under the new line of credit will reimburse 100 per cent of the contract value to the Indian exporters upfront upon the shipment of equipment and goods as well as the provision of services.
Major export items from India to Nigeria are transport equipment, machinery and instruments, pharmaceuticals, rice and electronic goods.
The agreement with Nigeria brings the number of credit lines made by India Exim Bank to 191, covering 76 countries in Africa, Asia, Latin America, Europe and Oceania and with a total commitment of over $10 billion.
