The African Export-Import Bank (Afreximbank) in collaboration with the Bank of Industry (BOI) signed a Memorandum of Understanding (MoU) for the establishment of a Joint Project Preparation Facility (JPPF) that would provide early-stage project preparatory financing and technical support services to public and private sector entities operating in Nigeria.
According to MoU, which was signed on November 3, 2022, Afreximbank and the BOI would rally resources to unlock investments into sectors such as energy, transport and logistics, ICT, special economic zones. industrial parks, solid minerals and services, including 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 of Export Development at Afreximbank, aimed to derisk projects and attract crucial private sector investments that would promote industrialization and boost value-added exports in the nation.
According to a joint press statement from Afreximbank and the BOI, the JPPF was created as a direct complement to Nigeria’s efforts to deal with the COVID-19 pandemic and ongoing macroeconomic issues brought on by the nation’s reliance on crude oil earnings.
Crude oil accounts for 50 per cent of consolidated Nigeria’s government revenues, 30 per cent of banking sector credit and 90 per cent of export earnings.
Commenting on the JPPF, the Executive Vice President -Intra-African Trade, Afreximbank, Mrs. Kanayo Awani, said: “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.
Speaking in the same vein, Pitan said: “In line with our commitment to driving Nigeria’s industrial transformation, we are delighted to commence this partnership which stands to achieve significant sustainable economic development in Nigeria.
“Through this Memorandum of Understanding, we will harmonise 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.”