European investment bank and UBA seal a deal of N20.89b

The European Investment Bank (EIB) and United Bank for Africa (UBA) have agreed to a new N20.89billion (60 million euro) lending programme to support private sector-driven growth across Nigeria.

The deal is said to represent the EIB's largest loan to UBA, and will allow UBA provide longer-term loans than currently available, to private companies in the country.

The new private sector lending programme was formally agreed on the sidelines of the World Bank Annual/International Monetary Fund (IMF) meetings in Washington DC.

EIB Vice President Ambroise Fayolle; UBA Group Managing Director, Kennedy Uzoka; and Head of Global Financial Institutions at UBA, Sola Yomi-Ajayi signed the agreement.

Speaking on the occasion, Fayolle said: "Private sector investment is crucial for creating jobs and ensuring sustainable economic growth.

"The EIB is committed to unlocking investment across Africa and we are pleased to build on past success to strengthen our partnership with UBA that will benefit projects across Nigeria."

Also speaking, Uzoka said: "Our growing partnership with the European Investment Bank underlines our long-term objective of facilitating the development and growth of African businesses.

"This facility will enable UBA bridge critical financing gaps for Nigerian companies and deepen our capacity to support their growth aspirations in the local and international market place."

Head of the European Union (EU) Delegation to Nigeria and the Economic Community of West African States (ECOWAS), Michel Arrion, described the programme as an example of the catalytic role the EU and its institutions, such as the EIB, are playing to support Nigeria's economic development.

"We look forward to more fruitful partnerships with Nigeria, and particularly with the private sector, which remains the engine of economic growth," Arrion said.

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