Stanbic IBTC, CDC Group To Offer $75million To Food And Agric Businesses In Nigeria

Businesses in manufacturing, food and agriculture sub-sectors will get access to more credit, as UK development fund firm, CDC Group, offers $75 million to companies operating in sub-sectors crucial to Nigeria's economy. The amount is expected to help businesses withstand the financial challenges caused by COVID-19 pandemic.

The $75 million was deposited with Stanbic IBTC Bank to disburse in order to allow for cash flow in Nigeria's financial constraint economy. The focus of CDC group is on manufacturing, food and agriculture businesses because they employ more workers and large number of small and medium enterprise (SME) supply chains are connected to them.

READ ALSO: Caverton's CFO, Titilola Adigun, Resign After Revenue Sources Collapsed, New CFO Takeover

Also, these sub-sectors are getting the credit support due to their role in domestic consumption and exports. While speaking about the debt facility, head of CDC Nigeria and coverage director, Benson Adenuga, said, "This debt facility is an important step in supporting Nigerian businesses in crucial sub-sectors such as food and agriculture." He said in a report by The Cable.

Adenuga added that, “This deal cements our relationships with Stanbic IBTC and Standard Bank Group, both key partners in Nigeria and across the continent. Our patient capital plays an important role in unlocking dollar funding, which is vital to finance longer-term investment projects in Nigeria.”

Commenting on the debt facility placed in charge of Stanbic IBTC, the Chief Executive of Stanbic IBTC, Wole Adeniyi, said, "Our partnership with CDC will strengthen Stanbic IBTC’s commitment to support Nigerian businesses amid the current context. Continuing to provide financing to local businesses is fundamental to mitigating the impacts of COVID-19 and accelerating Nigeria’s long-term economic recovery.”