UK DFI to Invest $1.2bn in Nigeria, Opens Lagos Office 2019

By November 30, 2018 Investment News

CDC Group Plc, The United Kingdom’s (UK) development financing institution (DFI), says it may invest up to $1.2 billion in Nigeria in post-brexit drive.

CDC Group, which has invested over $400 million in Nigeria, committed $25 million to the country’s small and medium scale businesses on Wednesday, celebrating its 70th year of existence in Nigeria.

Currently, the DFI has investments in Jumia, Azura Power, Zenith Bank, Diamond Bank, Afriexim Bank among others.

After leaving the European Union in March 2019, the UK plans to raise investments in Africa, in a bid to become the biggest G-7 investor on the continent by 2022.

Speaking in an interview with CNBC Africa, Nicholas O’Donohoe, said the DFI is willing to invest about £3 billion in Africa over the next four years, with over $1 billion coming to Nigeria.

“A reasonable figure for Nigeria, given the size of its economy, would be about $1.2 billion,” Bloomberg quoted O’Donohoe to have said.

The group, which supports over 40,000 direct jobs in Nigeria, is set to open its Lagos office early in 2019.

“We’ve been in Nigeria this week marking 70 years of investing in the country. As part of the trip, today we announced a new $25 million Nigerian investment, as well as the opening of our Lagos office (due early next year),” it said in a statement seen by TheCable.

“Nigeria plays a key part in our strategy of partnership and investment for economic growth in West Africa,” O’Donohoe said via the statement.

“CDC’s support for Synergy Fund II will help to boost Nigeria’s high-growth SMEs, supporting local entrepreneurs, job creation and economic development.

“We recently announced our ambition to invest up to US$4.5bn across Africa over the next four years. This latest US$25 million commitment and new office launch builds on our recent momentum in Nigeria and demonstrates our commitment.”

CDC is part of a growing UK Government ‘Prosperity’ offer to support Nigerian growth and poverty reduction, working alongside UK Aid’s development, trade and economic teams.

Source: The Cable