Just the other day, I read about how Diageo gave it’s Nigerian subsidiary Guinness Nigeria Plc a loan of $95 million at around 5.6% interest rate to help it deal with the foreign exchange issues. I sighed then, and asked Oluwa to please be a parent company to our economy generally.
It’s starting to look like God is answering that prayer. Today, the African Development Bank (AdB) announced that it invested $500m in the Nigerian Development Bank and is going to loan around $4.1 billion to Nigeria within this year and 2017, specifically to the Agriculture and Power sectors. The loans are priced at around 1.2% interest (which might as well be free by Nigerian standards), and the AdB says it plans to lend up to $10bn in total in Nigeria by 2019.
That’s a massive massive lifesaver, and those sectors are exactly where the money needs to go as we try to swing the country toward agriculture and manufacturing. I hope some of the money they give us ends up in transportation sector as well. Hopefully, there’s a private sector tie-in to the rest of the money.
The Aso Rock twitter account also talked about roughly $2bn+ that was given by the AfD Support Group which is going into plugging the budget deficit, investing in infrastructure, spending for ‘youth employment’ etc. I’m not sure if it’s part of the initial $4.1 billion or not, but its fair to conclude that it is.
This is all around great news. This is the great thing about having one of our own, former minister of Agric, Dr. Adesina at the helm. I mean, we would’ve gotten the loan from them either way, i think since Nigeria is Africa’s top economy and is in a recession. But the level of commitment is so freaking touching.
Let’s use this wisely.