WITHIN a year from now, the $1.5 billion credit facility the United States (U.S.) Ex-Im Bank has offered Nigeria will become available to fund reform in the electricity sector.
The U.S. bank's Regional Director for Africa, Rick Angioni, said in Washington DC that the first release of the funds "would hopefully be starting next year," adding that "the release of the facility would be done case by case as the power projects come on stream."
The official told The Guardian in an interview that the bank was confident about Nigeria's potential, because two years ago the bank's president commissioned a five-year strategic plan on the global economic situation and discovered that Nigeria was one of the nine countries with the most promising Gross Domestic Product (GDP) and export potential for the U.S.
In fact only Nigeria and South Africa featured on the list in Africa, according to Angioni, who added that "being the most populous in Africa, we believe there is no speaking of Africa, without Nigeria."
According to him, Nigeria has many entrepreneurs, who under a stable polity can make the nation economically robust with already 20% of U.S. exports in Africa ending up in the country.
Angioni who was part of the bank's recent delegation led by its President Fred Hochberg to Nigeria also credited the Nigerian Ambassador to the U.S., Prof. Ade Adefuye for making the trip and the agreement possible. According to him, Adefuye "is a wonderful ambassador, and a shining example of investment diplomacy."
Explaining how and when the bank would administer the $1.5 billion credit facility, the Regional Director said the pace of the ongoing reforms in the electricity sector would also determine the pace of the release of the funding.
He said: "The power sector reforms are still ongoing in Nigeria, we do not know yet when the projects will start, but they are being designed and bidding and the selection process is going on for the assets and implementation of the projects would soon follow."
Referring to the $1.5 billion credit facility, the director assured that "this is just one step of what we want to do in the Nigerian economy, there are more steps ahead." It is the view of the U.S. bank that the "future is very bright for Nigeria and we look forward to working with Nigeria," he observed.
U.S. Ex-Im Bank which is America's main export trade credit agency expressed confidence in the Nigerian economy, according to Angioni, and this he said explained why the bank was investing in Nigeria.
The bank director added that what was constraining the Nigeria's economy now included credit limitations, especially medium term and long-term financing, adding that the bank could be helpful in filling those gaps and such credit facilities would be targeted at building the nation's infrastructure.
For instance, the electricity sector reform in Nigeria would take about 12 years for it to manifest fully, explained Angioni, saying this was why the bank wanted "to provide low cost medium and long term credit facilities to Nigeria."
Unlike in other countries, where the bank operates, U.S. Ex-Im Bank says it is open in Nigeria to short, medium and long-term financing.
Commending both the Nigerian ambassador to the U.S. and his American counterpart, the U.S. Ex-Im Bank official said Adefuye and his "warm staff" had been very much instrumental to improving U.S.-Nigeria relations.
He said the ambassador was a "great asset to Nigeria," just as he praised the U.S. Ambassador to Nigeria Terrence McCulley, saying "we all care about Nigeria being a prosperous country."
The Guardian