The African Development Bank (AfDB), in a statement released on Friday, said that the Export-Import Bank of India and Nigeria signed $100 million line of credit agreement to finance energy projects.
The statement said the Managing Director of India-Exim Bank, Mr Yaduvendra Mathur and Nigeria’s Minister of Finance, Dr Ngozi Okonjo-Iweala, signed the agreement during the AfDB’s Annual Meeting in Kigali on Thursday, adding that the agreement was meant to provide electricity transformers for solar electrification in rural areas in three states of Enugu, Kaduna and Cross River.
It explained that the 100 million dollars would be spent on distribution of transformers for 96 communities in three senatorial districts of Enugu State.
It also said that part of the loan would 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,” it said.
The statement said that India-Exim bank would reimburse 100 per cent of the contract value to the Indian exporters upfront upon the shipment of equipment and goods under the agreement.
According to the statement, major export items from India to Nigeria are transport equipment, machinery, pharmaceuticals, rice and electronic goods.
The statement explained that the agreement with Nigeria brought India-Exim bank’s commitment in 76 countries in Africa, Asia, Latin America, Europe, and Oceania to 10 billion dollars.
The statement quoted Mathur as saying that “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.”
It also quoted Okonjo-Iweala as saying 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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