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Nigeria secures $1.2 billion loan from Brazil for agriculture modernization

The Federal Government has signed a fresh $1.2 billion Memorandum of Understanding (MOU) with the Development Bank of Brazil for agriculture modernization in Nigeria.

According to a report by the Guardian, the Nigerian government intends to improve agriculture mechanization and set up modern agro centers across the country with the credit facility.

The Senior Special Assistant to President Muhammadu Buhari on Agriculture, Dr. Andrew Kwasari addressed newsmen in Abuja on the loan agreement.

READ: Lagos multi-billion naira 32MT per hour rice mill to be completed by Q1 2021

Nature of loan

READ: AfDB and Japan sign $668.1 million loan agreement

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Credit Facility: A credit facility is a type of loan made in a business or corporate finance context. It allows the borrowing business to take out money over an extended period of time rather than reapplying for a loan each time it needs money.

In effect, a credit facility lets a company take out an umbrella loan for generating capital over an extended period of time.

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