African Development Bank (AfDB) has approved $350million loans to First Bank of Nigeria and FSDH Merchant Bank Nigeria to support import-export activity of local enterprises.
The continental lender said the two facilities are part of its broader efforts to provide counter cyclical support to the economy at a time of falling commodity prices.
It said the fall had caused shortages in foreign currency supply and led to unmet demand for trade finance instruments to support on-going economic transitions.
The Nigeria Country Field Office said yesterday in Abuja, that the facilities will support local enterprises involved in import-export activity.
“The loans will help to address critical market demand for trade finance and dollar liquidity by supporting vital economic sectors.
“Such sectors include agri-business, chemicals, construction and engineering, food processing, manufacturing and non-traditional exports.
“It will foster financial sector development, enhance regional integration, contributing to increased government revenue generation at a time when the Nigerian economy is facing fiscal pressures and foreign currency liquidity challenges.