FEC Approves 500m Euro Loan To Enable 1.2m Jobs

SAN FRANCISCO, November 21, (THEWILL) – The Federal Government has revealed its target of creating 1.2million jobs with a 500 million Euro loan, to be managed by the Bank of Insdustry (BoI).

According to Minister of State for Budget and National Planning, Clement Agba, the external creditors’ loan will support industrialisation and agriculture.

“Council today approved the issuance of a Sovereign Guarantee of 500 million Euros from the Credit Suisse AG London Branch and a syndicate of international lenders as collateral for 500 million Euro facility to the Bank of Industry,” he said at the Presidential Villa on Wednesday after the FEC meeting.

“The loan is basically to finance major industrialization projects and micro-small and medium enterprises value chains in Nigeria for up to five years tenor at affordable rates; these rates are single digit rates.

“The guarantor of the loan shall be the Federal Republic of Nigeria and this is going to be executed through the Ministry of Finance Budget and National Planning.

“The main objective of the loan is to support industry; revitalise agro-industrial processing zones, to facilitate the creation of new jobs.

“We do believe that about 1.2 million jobs will be created through this facility; increase the income of farming communities and promote the inclusion of SMEs and small holder producers in the industrial value chain and the deployment of transportation infrastructure that connect farming communities to processors and market.

“The loan will be swapped to Naira by the CBN to mitigate the foreign exchange risk and the fund will therefore be available to Nigerian enterprises at a more affordable rate and in local currency.” he stated.