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Nigerian projects receive over N82 billion IFC funds
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L-R: SME, Yu Xiao Gong, Chinese Investors and Wang Wen Shen, seeking investment opportunities at the One Stop Investment Centre (Osic) In Abuja, attending to them is Mohammed Baba, Head, front office
Nigeria is the leading beneficiary country of the International Finance Corporation (IFC) funds in Africa, with over N82 billion (US$684 million) being committed as at June 30, last year.
This was revealed by Lamide Olubuyide, a Nigerian in charge of loan disbursement to Small and Medium Enterprises (SMEs) in a Canadian bank, at a seminar organised recently by Bringforth Investments Limited in Lagos. He said, "This (US$684 million) is only three percent of IFC exposure to developing countries worldwide." He added that the amount is only about a third of what India, China and Brazil are each benefiting from the Corporation.
According to Olubuyide, the funds to Nigeria include an existing $25 million (N3 billion) credit line to Access Bank Plc and $20 million (2.4 billion) credit line to Diamond Bank Plc. He noted that Nigeria is still not availing herself enough of the opportunities provided by IFC.
He said, "In 2007, IFC committed $8.2 billion and mobilized an additional $3.9 billion through loan participation and structured trade finance for 299 investments in 69 developing countries. It also provided advisory services in 97 countries."
IFC is a member of the World Bank Group responsible for private sector investments in developing countries. It operates on a commercial basis thus investing only in for- profit projects alone.
Olubuyide said that "IFC organization has three main functions which include, finances to private sector initiatives in developing countries by way of loan and equity finance, as well as risk management products. Its advisory service is for both private businesses and government, in the areas of privatization, public policy and industry-specific issues."
He added, "Through its resource mobilization, it taps into international capital markets, arranges syndicated loans as well as structured trade finance transactions. For eligibility, the project must be located in a developing country that is a member of the IFC. It must be in the private sector, be technically sound, and have good prospects of being profitable. It must be environmentally and socially sound, meeting satisfying IFC standards and those of the host country and it must benefit the local economy."
According to Olubuyide, the funds to Nigeria include an existing $25 million (N3 billion) credit line to Access Bank Plc and $20 million (2.4 billion) credit line to Diamond Bank Plc. He noted that Nigeria is still not availing herself enough of the opportunities provided by IFC.
He said, "In 2007, IFC committed $8.2 billion and mobilized an additional $3.9 billion through loan participation and structured trade finance for 299 investments in 69 developing countries. It also provided advisory services in 97 countries."
IFC is a member of the World Bank Group responsible for private sector investments in developing countries. It operates on a commercial basis thus investing only in for- profit projects alone.
Olubuyide said that "IFC organization has three main functions which include, finances to private sector initiatives in developing countries by way of loan and equity finance, as well as risk management products. Its advisory service is for both private businesses and government, in the areas of privatization, public policy and industry-specific issues."
He added, "Through its resource mobilization, it taps into international capital markets, arranges syndicated loans as well as structured trade finance transactions. For eligibility, the project must be located in a developing country that is a member of the IFC. It must be in the private sector, be technically sound, and have good prospects of being profitable. It must be environmentally and socially sound, meeting satisfying IFC standards and those of the host country and it must benefit the local economy."
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