Development Bank to Start Operations January 2017

Kemi Adeosun Minister of Finance

by Bart Shinyi

The federal government has unveiled a plan to establish a Development Bank which will provide funding for existing and start up Small and Medium Enterprises (SMEs) in January 2017 with a capital of $1.3 billion to be pumped into the SMEs through micro finance banks and a few commercial banks at low cost.

Nigeria's Minister of Finance, Mrs. Kemi Adeosun who made this disclosure in Lagos over the weekend described the Small and Medium Enterprises as a “very critical sector” adding that it accounts for 50 per cent of the nation’s Gross Domestic Product (GDP), and that investment in the sector will boost activities in the economy.

She further stated that government is taking serious steps to bridge the infrastructure gap in the country with massive road construction in 2017 and the creation of Road Trust Fund in which both public and private sector funds would be pooled to fund road construction in the country.

She added that  government is considering offers from foreign investors  who have offered to invest in Nigerian roads.

“The infrastructure gap in Nigeria is $25 billion a year, every state of the federation has roads that are in really deplorable condition. What we are trying to do is to get government money into roads; secondly, we have created Road Trust Fund where we will put private money, particularly pension fund and invest it into roads.

The minister also stated that the third tranche of capital vote will be release before the end of the year to enhance the ongoing construction of roads in the country and further hinted that roads constructed by investors will be tolled to recoup their investment.