FG Secures $3bn Afreximbank Facility to Boost Industrialisation

The Federal Government has signed a Memorandum of Understanding (MoU) with Afreximbank to establish a $3 billion Nigeria Industrialisation Financing Facility aimed at developing an industrial park and light manufacturing sectors.

This agreement, signed by the Minister of Industry, Trade, and Investment, Dr. Doris Udoka-Anite, at the Afreximbank Annual Meetings (AAM) 2024 in Nassau, The Bahamas, is expected to create special economic, industrial, and agro-processing zones across Nigeria, generating approximately 20,000 jobs.

The financing facility is designed to support the development of the automotive sector and the Compressed Natural Gas (CNG) value chain, enhancing the automotive and transport sectors in Nigeria. Additionally, the package includes technical and financial support for the diaspora investment fund framework.

A significant aspect of this partnership involves collaboration with Arise Integrated Industrial Platforms (Arise IIP) and Afreximbank to revamp Nigeria’s cotton, apparel, and textile value chain. ARISE IIP, owned by Africa Finance Corporation (AFC) and Equitane (formerly ATIF), specializes in designing, financing, building, and operating integrated industrial zones.

This financing initiative is expected to create 20,000 jobs and attract investments estimated at over $2 billion. Afreximbank highlighted that this project would rejuvenate Nigeria’s cotton and textile production, which was a significant industry in the 1980s and 1990s.

“This will cut across the cotton belt in Nigeria, creating numerous jobs and revitalizing the country’s cotton and textile industry,” Afreximbank stated.