The US bank Multilateral Investment Guarantee Agency (MIGA) has backed the $71.9m build of Nigeria’s first float glass-manufacturing plant.

The aim of this plant is to meet the rising infrastructure-driven domestic demand in order to diversify the Nigerian economy.

Keiko Honda, CEO and Executive Vice President of MIGA, said: “This project helps Nigeria diversify away from the oil and gas sector.

“It will also help integrate domestic and regional markets, and stimulate entrepreneurship, consequently contributing to growth and job creation.”

Nigeria’s infrastructure development has led to a high demand for float glass, however most of the supply at the moment is through imports and does not meet domestic needs.

The plant will have a capacity of 500 tonnes per day and will produce tinted and solar control coated glass. 80% of the production will be sold locally and the balance will be exported to other countries in West Africa.

MIGA has issued guarantees of $71.9m in support of the construction, operation and maintenance of a float glass plant in Nigeria. The guarantees cover a loan by the China Development Bank, and an equity investment and non-shareholder loan by CNG Investment in Nigeria.

Cui Xiangdong, CEO of the project sponsor China Glass Holdings, said: “MIGA’s political risk insurance cover is a critical component of our overall risk management framework within Nigeria.”

The flat glass processor China Glass Holdings will provide technical training for local staff.