PROGRAMS AND EVENTS

US Government Provides $11 Million in Credit Support to Agricultural SMES in Nigeria

Date: March 17, 2008
Venue: Abuja

Ambassador Sanders congratulates MD Bank PHB Francis Atuche after signing the DCA $11 Million grant. | Full size

At the U.S. Ambassador’s residence, the United States Government, through the U.S. Agency for International Development launched a six year $11 million Development Credit Authority (DCA) Loan Portfolio facility with Bank PHB and Skye Bank. The facility provides partial loan guarantees to promote development of the agricultural commodity value chain in Nigeria.

Ambassador Robin Reneé Sanders said the program is expected to stimulate the agricultural sector by increasing financial access for farmers and agricultural commodity processors, resulting in greater productivity; increased commercialization of agricultural commodities; and value added processing.

The USG welcomes the opportunity to partner with two of Nigeria's leading banks on a program that will stimulate further lending to the real sector of the economy.

Under the program, USAID and it partner banks will provide strategic lending to targeted agriculture, agri-business and supporting industries to help develop rural value-added industries and in turn boost the confidence of financial institutions to invest and support these sectors. The guarantee will enable banks to fully address the most pressing financing needs of borrowers through provision of shorter-term working capital for operational and input costs, as well as longer-term fixed capital financing.

The launch was attended by the Managing Directors of Bank PHB and Skye Bank Mr. Francis Atuche and Mr. Akinsola Akinfemiwa respectively, USAID Mission Director Ms. Sharon L. Cromer and a host of other leading players in the agricultural sector and the Nigerian and U. S. Government public and private sectors.

USAID has been working in Nigeria since the 1960s and in 2007 provided about $190 million in development assistance to Nigeria in the areas of democracy and governance, agricultural development and economic growth, basic education, reproductive health and child survival, and HIV/AIDS.