AfDB’s DG Says Current Financial Sector Portfolio In Nigeria Hits $1.3bn

The African Development Bank (AfDB) Group, has said that its financial sector portfolio in Nigeria is currently valued at $1.3 billion of which the figure represents 30% of the bank’s portfolio.

This was made known by the Director-General, Nigeria Country department of AFDB, Mr. Kanin Barrow on Monday in Abuja at the signing of a $460,000 agreement with the Securities and Exchange Commission (SEC).

AfDB and SEC signed the agreement to support the acquisition and deployment of automated surveillance systems in the capital market to enhance SEC’s role in investor protection and ensure a transparent, fair and orderly market which reduces systemic risks.

What the DG is saying

The DG said the intervention included a 10 million dollar financing package for Infrastructure Credit Guarantee Company  Limited (infraCredit) which was geared toward supporting the development of the corporate bond market.

Mr. Barrow noted that the bulk of the interventions were in the form of lines of credit to financial institutions and the support for the market was particularly for infrastructure development and to mitigate currency risks.

He revealed that the Bank is also supporting Nigeria’s Infrastructure Debt Fund through a 10 million dollar facility that provides long-term local currency debt financing.

He said ”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.

”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.

”This has become even more urgent with the African Continental Free Trade Area (AfCFTA) being operational.”

What you should know

• The African Development Bank Group (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’s mission is to fight poverty and improve living conditions on the continent through promoting the investment of public and private capital in projects and programs.