Nigeria gets 30% of AfDB financial sector portfolio
By Jeph Ajobaju, Chief Copy Editor
Nigeria has $1.3 billion worth of financial sector portfolio of the African Development Bank (AfDB) Group which represents 30 per cent of the bank’s portfolio outlay.
AfDB Nigeria Country Department Director General Kanin Barrow made the disclosure at the signing of a $460,000 agreement with the Securities and Exchange Commission (SEC) in Abuja.
The agreement supports the acquisition and deployment of automated surveillance systems in the capital market to enhance the role of the SEC in investor protection and ensure a transparent, fair, and orderly market which reduces systemic risks.
Barrow said the deal includes a $10 million financing package for Infrastructure Credit Guarantee Company Limited (infraCredit) which supports the development of the corporate bond market.
The bulk of the interventions are in form of lines of credit to financial institutions and support for the market is particularly for infrastructure development and mitigation of currency risks.
AfDB is also supporting Nigeria’s Infrastructure Debt Fund through a $10 million facility that provides long-term local currency debt financing, according to Barrow
“The objective is to crowd-in local pension funds and other institutional investors for infrastructure development in Nigeria.
“The pandemic has reinforced global risk aversion, prompting international investors to move their portfolios into safer assets and havens,” Barrow explained.
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Equity market growth
“It is our desire to see growth of the equity market well beyond the current N28.16 trillion.
“That is why the AfDB Group is supporting initiatives to integrate capital markets in Africa and innovative financial instruments,” Barrow added, per Nairametrics.
“This has become even more urgent with the African Continental Free Trade Area (AfCFTA) being operational.”
About AfDB
AfDB is a multilateral development finance institution founded in 1964 and comprises three entities: The African Development Bank, the African Development Fund, and the Nigeria Trust Fund.
AfDB aims to fight poverty and improve living conditions on the continent through promoting the investment of public and private capital in projects and programmes.
