African Export-Import Bank (Afreximbank) and the Bank of Industry (BOI) have signed a Memorandum of Understanding for the establishment of a Joint Project Preparation Facility (JPPF).
This facility will offer technical support services and early-stage project preparation financing to public and private sector organizations operating in Nigeria.
Afreximbank and BOI would mobilize funds under the terms of the MoU to open investment doors in industries like energy, transportation and logistics, ICT, and special economic zones. solid minerals, industrial parks, and services (healthcare, hospitality and tourism, and the creative economy).
The MoU, which was signed by Mr. Olukayode A. Pitan, Managing Director and Chief Executive Officer of BOI, and Mrs. Oluranti Doherty, Director – Export Development, Afreximbank, aims to de-risk projects and attract crucial private funding.
The JPPF constitutes a direct response to complement Nigeria’s initiatives to address the twin challenges of the COVID-19 pandemic and existing macro-economic challenges associated with the country’s dependence on crude oil revenues, which account for 50 percent of consolidated government revenues, 30 percent of banking sector credit and 90 percent of export earnings.
Executive Vice President -Intra-African Trade, Afreximbank, Mrs. Kanayo Awani, commented: “We are quite pleased by this opportunity to, once again, partner with BOI in proffering a solution to one of the major challenges that have impeded the flow of investments that will boost Nigeria’s industrial development and export-oriented sectors.
I am particularly pleased that Afreximbank and BOI are boldly venturing upstream to help investors develop well-structured projects that meet market standards.
“This intervention is timely as the JPPF will play a catalytic role in accelerating the diversification of the Nigerian economy by ensuring a steady flow of bankable projects in priority tradable sectors in a timely manner. In addition to enhancing bankability, the JPPF will, on a case-by-case basis, undertake feasibility studies to assess the viability of accessing markets in the sub-region, thereby promoting intra-African trade under the AfCFTA.”
“In keeping with our commitment to supporting Nigeria’s industrial transformation, we are happy to begin this cooperation,” said Mr. Olukayode A. Pitan, Managing Director and Chief Executive Officer of BOI. “This partnership stands to deliver considerable sustainable economic development in Nigeria.
Through this Memorandum of Understanding, we will harmonize efforts with Afreximbank for the promotion of trade and investment flows; undertake business development activities; and share project preparation pipelines in sectors of mutual interest. We will also be better-positioned to provide technical, financial and legal services that will culminate in the supply of bankable projects, while promoting and raising awareness of project preparation activities in Nigeria and Africa at large.
Our participation in the JPPF will therefore unlock development impacts such as quality jobs, FX generation and savings, and technology transfer.”
