FG Secures $3.5bn Funding from Afreximbank for Textile, CNG Vehicle Development

FG signs $3.5 billion agreement with Afreximbank for CNG cars, textile sector, and other projects.

FG and Afreximbank sign landmark $3.5bn agreement to transform Nigeria's industrial landscape, create jobs, and drive sustainable growth.

The Federal Government announced a $3.5 billion agreement with Afreximbank to support, among other initiatives, the textile sector and the growing use of compressed natural gas (CNG) automobiles.

The Minister of Industry, Trade, and Investment, Doris Uzoka-Anite, revealed this information in a statement on Tuesday, June 18.

The Minister stated that the deal was finalized with the global financial organization at the 31st Annual Meeting of Afreximbank, which took place in Nassau, Bahamas.

She underlined that the accord would help realize President Bola Ahmed Tinubu's goal of a vibrant and diverse Nigerian economy.

“I am pleased to report that a groundbreaking $3.5 billion MOU agreement between the Ministry of Industry, Trade & Investment and Afreximbank was signed at the 31st Afreximbank Annual Meeting in Nassau.

“This landmark agreement is a major step towards fulfilling President Bola Ahmed Tinubu's vision for a diversified and prosperous Nigerian economy,” She said.

According to Uzoka-Anite, the historic pact addresses the following economic areas:

• $3 Billion Industrialization Financing Facility: Accelerating Nigeria's journey to becoming a fully industrialized nation.

•State-Wide Investment Vehicles/Projects: Attracting more investments to our states, fostering regional development.

• Global Country Guarantee: Boosting investor confidence in Nigeria by providing guarantees for investments.

• Revamping the Textile and Apparel Industry: In partnership with Arise Integrated Industrial Platforms, aiming to create up to $3.3 billion in project capital expenditure and generate jobs for our youth.

• Developing the CNG Value-Chain: Enhancing our automotive and transport sectors with a focus on sustainability.

The Minister previously stated that in order to strengthen Nigeria's textile, cotton, and apparel industries, the federal government hopes to draw in $3.5 billion in investments in a single year.

She emphasized how important this investment is to the ministry's attempts to bring the once-stagnant textile industry back to life.

Furthermore, she underlined that Nigeria's textile industry encompasses the whole apparel value chain in the nation.

The minister stated that putting money into the textile sector will generate jobs in Nigeria for both qualified and unskilled workers.

Expanding on this, Uzoka-Anite said that working with Afreximbank is anticipated to create jobs, transform Nigeria's industrial sector, and promote long-term economic growth.

She emphasized that the deal is a step toward Nigeria's future prosperity and brightness.

“This collaboration with Afreximbank is set to transform our industrial landscape, create jobs, and drive sustainable economic growth.

“Together, we are paving the way for a brighter and more prosperous Nigeria,” she added.

Uzoka-Anite emphasized that through encouraging innovation and increasing job prospects nationwide, the partnership with Afreximbank has the potential to completely change the industrial environment.