The Federal Government of Nigeria has signed a pact with the Brazilian Government for a $1.2 billion loan targeted at boosting the agriculture sector with the deployment of modern technologies.
The Memorandum of Understanding (MoU) was signed between both governments recently, with the credit facility set to be provided by the Development Bank of Brazil.
According to a report by The Guardian, the loan would help drive the Federal Government initiative to boost agricultural mechanisation and agro-processing centres across the country.
AgroNigeria gathered that the loan is a bilateral agreement between Nigeria and the Brazilian Government, and would be guaranteed by the Islamic Development Bank and Islamic Corporation of Insurance for Export Credit.
It would also create market-oriented private sector-driven service centers across the country to address the two twin issues of agricultural modernisation and agro-processing.
The credit facility is called “the Green Imperative Project “(GIP) and would last for 15 years.
Senior Special Assistant to President Muhammdu Buhari on Agriculture, Dr. Andrew Kwasari, revealed this to newsmen in Abuja.
Kwasari said, “The Green Imperative Project (GIP) is a facility that will inject foreign direct investment of €995 million or $1.2 billion that has been structured financially to allow the government uses its bilateral negotiation and arrive at financing that is below three per cent interest rate and has a long gestation period of 15 years to repay”.
The loan is also expected to inject a $1.2bn foreign direct investment at a 3 percent interest rate over the period.
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