The Africa Development Bank (AfDB) Group has granted a $175 million financial package to the United Bank for Africa (UBA) to strengthen its support for the private sector and contribute to Nigeria’s infrastructure development.

The package includes $100 million in long-term senior debt, $50 million in trade finance medium-term senior debt, and a $25 million risk participation program.

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The long-term senior debt will boost UBA’s capacity to fund projects in critical sectors such as infrastructure, agriculture, manufacturing, energy, and SMEs.

The AfDB’s Affirmative Action for Women in Africa (AFAWA) initiative will provide technical assistance to support women-owned SMEs.

The trade finance senior debt aims to offer countercyclical dollar liquidity to aid SMEs and local corporates engaged in export-import activities.

The risk participation agreement aims to strengthen UBA UK’s role as a regional confirming bank, facilitating access to international markets for African issuing banks.

The partnership aligns with AfDB’s priorities, including powering Africa, feeding Africa, integrating Africa, and industrializing Africa.

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The funding is expected to address the unmet demand for trade finance in Nigeria and Africa, supporting exports and the importation of essential goods for key economic sectors, while also providing stable and affordable funding for SMEs.

UBA’s Group Managing Director/CEO, Oliver Alawuba, emphasized the significance of the facility in supporting critical sectors and fostering the growth of women-owned businesses and SMEs, considered vital for economic development.