United Bank for Africa Plc has signed a $200 million contract with leading oil Exploration Company, Shell, which will see the bank to provide credit facilities to the oil company’s local vendors and suppliers.
Bashir Bello, General Manager, Government and Business Relations, Shell described the partnership as a good development for Shell’s Nigerian suppliers.
Bello added, “Lack of access to capital hinders many Nigerian companies from competing for and executing contracts effectively”.
With this deal, the contractors’ support fund for Royal Dutch Shell Plc’s Nigerian operation has risen to $2.4 billion.
In a statement, Shell said the fund can be accessed by contractors and suppliers who have “valid purchase order and meet the bank’s risk assessment criteria.”
In 2016, Shell signed a $2.2 billion accord with seven Nigerian lenders and according to the oil company, about $1.5 billion worth of loans have since been given to over 300 small and medium sized businesses who either supply to Shell Nigeria or serve as vendors to the company’s products.