The African Development Bank Group and United Bank for Africa Plc have signed a $150m loan agreement to finance infrastructure and the Small and Medium-scale Enterprise’ projects, including women-owned enterprises in Nigeria.
The Group Managing Director/Chief Executive Officer, UBA, Mr. Kennedy Uzoka, was quoted in a statement as saying, “The funds will support development of productive sectors of the economy, particularly the power sector, infrastructure, women-owned enterprises as well as the SMEs.
“This line of credit comes at an opportune time and will boost efforts at reducing the huge power sector-financing deficit that is limiting energy supply and complement our support to Medium and Small-scale Enterprises, while also promoting gender diversification across the value chain.”
According to the statement, UBA, one of the largest commercial banks in the country, operates in 19 African countries while providing a wide range of products and services.
It said UBA Nigeria had been the leading financial institution to support various infrastructure projects, particularly power, telecom, transport and social infrastructure such as hospital and education facilities. It also received the Social Infrastructure Deal of the Year Award in 2015.
The lender, the statement said, operates in each of the country’s 36 states through more than 450 branches supporting 3,700 SMEs across the country.
According to the statement, the AfDB has remained UBA’s long-term partner in its financing activities.
It said, “In 2009, the AfDB provided liquidity facilities to deepen its trade finance and other lending activities, thus contributing to key economic sectors of the Nigerian economy, particularly at a time when the economy requires critical funding to stimulate growth and employment.
“By leveraging UBA’s branch network, the line of credit will also scale up lending to the SMEs and women enterprises in both urban and rural areas to create more jobs and to promote inclusive growth for Nigeria’s economy by stimulating the various sectors such as manufacturing, construction, agriculture, education and services.”