FG Appoints Afribank for UBE Funding

Afribank Nigeria Plc has been designated as Universal Basic Education (UBE) Funds Domiciliation and disbursement bank by the Federal Government through the Federal Ministry of Finance and the Universal Basic Education Commission.
At the signing ceremony for the funding held in Abuja, Mr. Achinivu Ochi Chinoyerem, the Permanent Secretary, Federal Ministry of Finance, congratulated Afribank for scaling through and meeting the requirements to disburse the fund.
Chinoyerem acknowledged the vital role of banks in the Federal Government’s aspiration to bring about development in the educational sector and the economy.
By this appointment, Afribank will participate in warehousing the FGN 50 percent matching contribution to the Universal Basic Education Scheme in partnership with State Governments.
Commenting on this collaboration with the Federal Government, Mr. Nebolisa Arah, Group Managing Director, Afribank Nigeria Plc, said, “the appointment of Afribank, for the UBE funding scheme, demonstrates Afribank’s capacity to discharge its role as a strategic development partner with the Government at all Levels”.
The Federal Government shall provide block grants of not less than 2 percent of the Consolidated Revenue Fund (CRF) into the Funds.
Each beneficiary State shall contribute not less than 50% of the total cost of projects as its commitment in execution of the project.
The operation of the Funds to States shall be on 50% – 50% basis, as provided in Part III of the UBE Act, 2004.
Additionally, the States can leverage on the domiciliation of the Funds at Afribank to raise counterpart contribution component at a predetermined concessional interest rate for the purpose of funding their Universal Basic Education Projects.
He therefore called on all the State Governments to approach Afribank through any of the bank’s outlets spread across the Federation to access these funds for the development of education in their States.
The appointment of Afribank is another testimony of its excellent track record of performance in transaction services for government and private institutions over the years.
The bank has effectively deployed its on-line real time capability to offer seamless and instant reconciliation and prompt renditions of payments.
This has boosted the revenue drive, transparency and accountability of states and organizations the bank has worked for.