AFD Offers €400m Grant to Nigeria

The French Agency for Development (AFD), a public development finance institution has said it recently approved €400 million as grant to finance transport and energy projects in Nigeria.

The Country Director, AFD, Mr. Hubert Dognin stated this at the European Union (EU)- Nigeria business forum held in Lagos.

He said his agency needed to identify projects with Nigeria which would need financing.

According to him, the facility for Nigeria, under the infrastructure trust fund and the regional indicative program is an EU facility.

“At the regional level, we have €400 million available for transport and energy and at the national level, for the national indicative program, we have $150 available to finance the energy sector,” he added.

Also commenting on the improved bilateral relationship trade between the EU and Nigeria, the EU Ambassador to Nigeria and the Economic Community of West African States (ECOWAS), Mr. Michael Arrion said:  “EU Foreign Direct Investment (FDI) stock in Nigeria grew from €25.3 billion (N5.3trillion) in 2011 to €27.2 billion (N5.7 trillion) in 2012.

“The EU is also Nigeria's most important

trading partner. In 2013 alone total EU-Nigeria trade stood at €40.4 billion (N8.5trillion). EU imports from Nigeria were valued at €28.7 billion (N6trillion) while EU exports to Nigeria stood at €11.8 billion (N2.5trillion).”

“Though Nigeria maintains a positive trade balance with the EU, and the EU remains the biggest market for both oil and non-oil exports such as leather cocoa, sesame, it is imperative to address the EU- Nigeria relationship towards a more diversified composition and a strengthened ECOWAS regional market,” he added.

Arrion also said that the EU is working closely with the Nigerian authorities to improve its business environment and competitiveness, boosting its industrial revolution agenda through support to the reform of the electricity sector and accessing long term financing and tackling social issues like malnutrition.

Thisday