The Nigerian Bureau of the Eco Bank is to take off in January following the granting of licence to the bank by the federal government, finance sources have disclosed.
This will make Nigeria the first country in West Africa to open its bureau of the ECOWAS sub-regional bank after the headquarters was formally opened in Lome, Togo in July.
The Nigerian Bureau is to coordinate affairs of the bank in Nigeria for the economic and social development of the member states of the sub-region.
This, the bank will do through the creation of two subsidiaries one for commercial banking and the other as a corporation for development services. The two sub-divisions of the bank, to be situated in Lagos, will be managed and staffed differently.
Sources close to the sponsors of the bank, Chambers of Commerce and Industry, enthused that since the take off of the bank will coincide with the commencement of the ECOWAS Economic Recovery Programme (ERP), the bank will go a long way towards the success of the programme
Thus it will hopefully do through development funding of private projects related to the 136 priority projects agreed upon b ECOWAS members states, sources further added.
These will include projects categorised as national projects particularly those covering the private sector and recognised among the priority projects.
Such projects would span through rural development-oriented projects, transport and industries and project capable of promoting regional integration.
The Eco Bank has a capital base of $50 million allocated to 16 member states and the ECOWAS fund.
Nigeria has the highest equity holding of $20 million or 40 per cent of the total. Senegal has $3.5 million, Sierra Leone $1.75 million while Togo has $2 million.
The Republic of Benin has $1.75 million, Burkina Faso $2 million, Cape Verde $0.5 million, Cote D’Ivoire $5.00 million, Gambia $0.5 million and Ghana $1.5 million.
Others are Guinea Bissau $1.00 million, Guinea $0.5 million, Liberia $1.75 million, Mali $1.00 million, Mauritania $0.5 million, Niger $1.75 million. ECOWAS Fund has equity shares of $5 million or 10 per cent of the total.
Meanwhile, founder shareholders have provided the initial risk capital of US $0.5 million (2.0 million) as the initial ordinary share capital required by law before incorporation.
Eco Bank share are quoted in dollars, but investors do subscribers in local currencies equivalent, while local chambers of commerce or other designated agencies procure appropriate government approval for the necessary transfer in foreign exchange to the international account of ECOBank.
