Brazil sanctions USD 1.1 bn loan to Nigeria to strengthen agriculture

Brazil has agreed to lend USD 1.1 billion loan to Nigeria to boost the agricultural sector. On January 17, the government of Nigeria announced that the loan will be taken through 'The Green Imperative', which is Brazil-Nigeria bilateral project.

'The Green Imperative' (Brazil-Nigeria bilateral project) is structured to boost Nigeria's agricultural sector through the provision of modern machine tools. The partnership will also include, as revealed by the government, 10,000 tractors to be assembled in Nigeria, more than 707 centres to be established to train not less than 10,000 Nigerians, as reported by Pulse's Business Insider.

"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," said Nigeria's Vice President, Yemi Osinbajo. He also called the project 'The Green Imperative' as a game changer.

Source reveals that the African country's government will get the loan facility in four tranches over a period of two years. Mostly, it will be provided in kind through the supply of agricultural machinery and implementation in the form of Completely Knocked Down parts, CKDs. The government is on the opinion that the arrangement will shorten the fiduciary risk.

The new bilateral project is likely to generate over five million jobs, mainly among the youths.