Abuja - The Export-Import Bank of India and Nigeria have signed a $100 million line of credit agreement to finance energy projects in Nigeria.
The Managing Director of India-Exim Bank, Yaduvendra Mathur and Nigeria’s Minister of Finance, Dr Ngozi Okonjo-Iweala, signed the agreement during the AfDB’s Annual Meeting in Kigali.
The agreement is meant to provide electricity transformers for solar electrification in rural areas in three states of Enugu, Kaduna and Cross River.
The $100 million would be spent on distribution of transformers for 96 communities in three senatorial districts of Enugu State.
Part of the loan would also be used to provide a substation, including solar mini-grid electrification and solar street lighting in Kaduna State.
The money will also be used for the construction of two 26MW gas-based power plants in Cross River State in the Delta Region of the southern part of Nigeria.
The India-Exim bank would reimburse 100 percent of the contract value to the Indian exporters upfront upon the shipment of equipment and goods under the agreement.
Mathur said “Exim Bank is very proud to engage with Nigeria in the area of electricity development and we are looking forward to further corporation in different sectors.”
Okonjo-Iweala on her part noted that the agreement had been in negotiations for seven years and that its implementation signified a great shift in the relationship between Exim Bank and Nigeria.
“We are more interested in having a programmatic type of discussion so that we tell you the areas that we feel we want to work with you, this is a beginning,” Okonjo-Iweala said.
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