An investment of US$256 million has been approved by the African Development Bank Group (AFDG) to finance infrastructure works in Nigeria and Ethiopia.
A US$150 million senior loan will be allocated to Lekki Port Lagos Free Trade Zone (LFTZ), Nigeria, for the construction of a greenfield seaport.
The loan for the LFTZ project, which involved the recent structuring of financial terms, was granted to Lekki Port LFTZ Enterprise – the area owned and operated by the Nigerian Ports Authority.
The project, estimated at US$1.675 billion, would be financed through a 54/46 debt-to-equity ratio.
AFDG’s statement explained: “It [the investment] is aligned with the Bank’s Nigeria Country Strategy Paper 2012-2016 which stresses infrastructure development in the non-oil and transport sector as well as the country’s Vision 2020, which emphasizes modernising infrastructure.”