AfDB approves $14.12 for Nigeria’s membership of ATI

The African Development Bank (AfDB), has approved $14.12million facility to support Nigeria’s membership in the African Trade Insurance agency.

The bank disclosed this in a statement made available on Tuesday in Abuja, adding that Nigeria’s membership of the trade group was a critical and mandatory step to enable ATI to commence its operations in Nigeria.

The statement further revealed that Nigeria would be joining 14 other African countries who are already members of ATI.

Membership of ATI, a pan-African institution that provides political risk insurance to companies, investors, and lenders interested in doing business in Africa, AfDB, would benefit Nigeria, as it would provide gross political and commercial risk insurance cover on total investments and trade amounting to over $5bn by 2020.

The statement read in part: “The approved facility complements ongoing and planned interventions geared at building institutional capacity and improving the resilience of the Nigerian economy.

Read also: AfDB commits $410m to power transmission projects in Nigeria

“Joining ATI will enable Nigeria to leverage its position to mobilise additional resources to finance trade, especially importation of essential goods such as medicines and communications equipment, to rehabilitate basic infrastructure and strengthen the country’s productive sector.

“ATI’s mandate is to provide medium- to long-term credit and political risk insurance, as well as other risk mitigation products to its member countries and related public and private sector actors.

“These products directly encourage and facilitate foreign direct investment as well as local private sector investment in regional member countries and intra- and extra-African trade. ATI catalyses private sector investments in infrastructure projects, thereby promoting economic integration of participating countries into regional markets.

“This financing aligns with four of the bank’s high five priorities, namely: Light Up and Power Africa, Industrialise Africa, Feed Africa and Integrate Africa.”

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