The Japanese ambassador to Nigeria, Mr Toshitsugu Uesawa, said the grant was in fulfilment of a pledge made by the Japanese government at the G8 Gleneagles summit, to support the growth of the private sector in Africa.

"Japan announced at the G8 Gleneagles summit to implement the Enhanced Private Sector Assistance (EPSA) initiative for Africa, in partnership with the AfDB.

"The EPSA is a one-billion-dollar joint initiative of Japan and AfDB to promote private sector development in Africa, through studies, technical assistance and capacity building.

"The grant is also for private sector projects and African institutions, such as the AB Microfinance Bank of Nigeria,'' he said.

Uesawa said the continent lagged behind in the achievement of the Millineum Development Goals (MDGs), due to the poor contribution of the private sector.

He cautioned that the development might jeopardise MDGs achievements attained through the efforts of Nigerians and their development partners.

"We expect that the ESPA will help revitalise the Nigerian private sector. The role of the private sector is important to the development of Nigeria.

"Nigeria needs to focus more on innovative action, such as better promotion of agriculture, health, education and small-scale entrepreneurship, among others,'' he added.

Mr Herve Assah, AfDB Resident Representative in Nigeria, said the fund was attached to an equity investment of US$1 billion from FAPA.

"The fund for FAPA is a component of EPSA, a billion-dollar joint initiative of Japan and AfDB to promote private sector development in Africa.

"Since FAPA's creation in 2006, Japan has contributed 30 million dollars, while AfDB has contributed 10 million dollars,'' he said.

Assah promised that other micro finance banks in Nigeria duly registered with the CBN would benefit from the fund.

-APA