{"id":12310,"date":"2018-11-27T08:25:54","date_gmt":"2018-11-27T05:25:54","guid":{"rendered":"https:\/\/www.atidi.africa\/nigerias-banks-and-economy-set-to-get-relief-from-ati\/"},"modified":"2018-11-27T08:25:54","modified_gmt":"2018-11-27T05:25:54","slug":"nigerias-banks-and-economy-set-to-get-relief-from-ati","status":"publish","type":"post","link":"https:\/\/www.atidi.africa\/ja\/nigerias-banks-and-economy-set-to-get-relief-from-ati\/","title":{"rendered":"Nigeria\u2019s banks and economy set to get relief from ATI"},"content":{"rendered":"

ABUJA, 26 November\u00a02018<\/strong> \u2013 The Government of Nigeria and private sector investors will soon receive important support that will help boost key industries such as the banking sector as well as providing access to competitively priced credit and loan facilities for institutions in Nigeria. Relief is expected once Nigeria finalises its membership into ATI, which is nearing completion. ATI is Africa\u2019s only multilateral credit and investment insurer, similar to the World Bank\u2019s MIGA but with a focus purely on Africa. In order for a country to access ATI\u2019s full slate of investment solutions, it must be a full member and shareholder.<\/p>\n

ATI held a Forum on De-risking Nigeria\u2019s Investments and Trade today in Abuja to inform the private and public sectors about the benefits that await Nigerian companies, the government and its institutions once membership in ATI is finalised.<\/p>\n

Specifically, ATI will help improve Nigeria\u2019s economic outlook in the following ways:<\/p>\n

    \n
  1. For the overall economy, ATI\u2019s presence will help to reassure investors, particularly in the current election cycle – an environment that often leads to investors delaying their planned projects in any African country undergoing elections. This risk may already be reflected in Nigeria\u2019s foreign direct investment flows which totalled US$1.2 billion in the first half of the year down from US$1.7 billion a year earlier. ATI provides investors with political risk and investment insurance to protect their investments against any unilateral government-related action (including non-payment) that might negatively impact their investments or projects.<\/li>\n
  2. ATI will also help the government in its plans to diversify the economy through its support to banks and across a broad spectrum of economic sectors. ATI provides credit insurance solutions which can act as a form of collateral, therefore freeing up banks\u2019 capital allowing them to lend at greater volumes. With local banks now focusing on decreasing their non-performing loan rates, some are hesitant to lend to the manufacturing and agricultural sectors, where the development of both is a major government objective. From a bank\u2019s perspective, these are risky sectors with high credit risk. With ATI\u2019s credit insurance solutions, this risk can be mitigated, thus opening up more loans to these priority sectors.<\/li>\n<\/ol>\n

    Speaking at a press briefing following the forum in Abuja, ATI\u2019s Chief Executive Officer, George Otieno commented \u201cThere are numerous benefits to Nigeria becoming a member of ATI. First, investors and international lenders will look favourably on this action and the second the time couldn\u2019t be better for our solutions. We can support the government to diversify the economy, boost banks liquidity, and even help the government to borrow internationally at more competitive rates. This year ATI\u2019s products will stand behind around 5% of all new FDI into Africa so joining ATI literally boosts growth. Lastly, ATI is now paying dividends to shareholder making membership a near budget neutral decision for governments.\u201d<\/em><\/p>\n

    African countries that are members of ATI are able to capitalize on ATI\u2019s unique financial solutions. For example, Nigeria\u2019s neighbour and ATI\u2019s first West African shareholder, The Republic of Benin, recently utilized ATI\u2019s investment insurance to attract EUR 610 million for infrastructure and debt refinancing supported by ATI\u2019s network of global lenders and insurance partners.<\/p>\n

    ATI currently has 14 member countries including some of Africa\u2019s strongest economic performers including C\u00f4te d\u2019Ivoire, Ethiopia, Kenya and Rwanda, and nine institutional members including the African Development Bank. ATI continues in its push to increase West African membership with Ghana also expected to finalise its membership in ATI in early 2019.<\/p>\n","protected":false},"excerpt":{"rendered":"

    ABUJA, 26 November\u00a02018 \u2013 The […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[970],"tags":[],"class_list":["post-12310","post","type-post","status-publish","format-standard","hentry","category-970"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.atidi.africa\/ja\/wp-json\/wp\/v2\/posts\/12310","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.atidi.africa\/ja\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.atidi.africa\/ja\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.atidi.africa\/ja\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.atidi.africa\/ja\/wp-json\/wp\/v2\/comments?post=12310"}],"version-history":[{"count":0,"href":"https:\/\/www.atidi.africa\/ja\/wp-json\/wp\/v2\/posts\/12310\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.atidi.africa\/ja\/wp-json\/wp\/v2\/media?parent=12310"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.atidi.africa\/ja\/wp-json\/wp\/v2\/categories?post=12310"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.atidi.africa\/ja\/wp-json\/wp\/v2\/tags?post=12310"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}