One of Africa’s leading banking Groups, The United Bank for Africa Plc (UBA) on Wednesday announced a US$150 million loan agreement with African Development Bank Group (AfDB) to “support the development of productive sectors of the economy”.
In a statement by Kennedy Uzoka, UBA Group Managing Director/CEO, the productive sectors include power, infrastructure, SME projects, and women owned enterprises.
He said: “The Fund will support development of productive sectors of the economy; particularly the power sector, Infrastructure, Women owned enterprises as well as SMEs.
“This line of credit comes at an opportune time and would 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.”
The fund, according the bank, will also scale up lending to 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.
UBA supports over 3,700 SMEs across the country through its more than 450 branches in the 36 states of Nigeria. The institution received the Social Infrastructure Deal of the Year Award in 2015.
The bank has been the leading financial institution to support various infrastructure projects, particularly power, telecom, transport and also social infrastructure such as hospital and education facilities.
AFDB have been UBA’s long-term partner in its financing activities. The multilateral development finance institution provided liquidity facilities to deepen its trade finance and other lending activities, thus contributing to key economic sectors of the Nigerian economy.