Nigerian government says it will take a $1.1 billion loan from the Brazilian government to boost the country’s agricultural sector.
Nigeria’s vice president; Yemi Osinbajo, who launched the project in Abuja says this will be done through ‘The Green Imperative’ – a Brazil – Nigeria bilateral project.
The government expects this to provide five million jobs as Unemployment rate in Nigeria jumped to 115.5 million as at the third quarter of 2018
“We cannot bring our nation out of poverty without investment in agriculture. Also, the sheer number of young people coming of age will not only need to be fed but employed. They want dignified jobs with decent pay’ , Professor Osinbajo said
Professor Osinbajo also described the project as a game-changer in Nigeria’s agriculture sector
The partnership with Brazil also includes 10,000 tractors to be assembled in Nigeria and over 707 centres to be established to train not less than 10,000 Nigerians.
He further described the ‘Green Imperative’, as a game changer.
While there are concerns over Nigeria’s debt stock which currently stands at $73.21 billion according to data from the Debt Management Office, the agreement with Brazil will see the Nigerian government get the loan facility in 4 tranches over a period of 2 years.
It will also be provided in kind through the supply of agricultural machinery and implementation in the form of Completely Knocked Down parts, CKDs.
The government believes the arrangement will reduce the fiduciary risk.