An agreement for a $50 million line of credit has been inked between the African Development Bank and First City Monument Bank, FCMB, to facilitate access to capital for small-and medium-sized businesses and women-owned businesses.
The line of credit will be used by FCMB to increase lending activities that will aid in the post-pandemic economic recovery of the nation and promote inclusive and climate-resilient growth.
It will concentrate on businesses in Nigeria’s manufacturing, healthcare, and renewable energy industries.
Under its Affirmative Finance Action for Women in Africa (AFAWA) initiative, the African Development Bank is additionally offering a technical assistance package of US$285,000.
The grant money from the Women Entrepreneurship Finance Initiative (We-Fi) will help women-owned firms improve their financial literacy, company management, and entrepreneurial skills while also making the FCMB’s monitoring and reporting capabilities stronger.
“The Bank’s support to FCMB will advance the objectives of the Affirmative Finance Action for Women in Africa (AFAWA) initiative, which seeks to improve gender inclusivity by enhancing access to finance for women entrepreneurs,” said Lamin Barrow, director general of the African Development Bank for Nigeria.
“With at least 30 percent of the funding from the Line of Credit to be channelled to women owned businesses, FCMB will be better positioned to scale up the deployment of its tailored products and services to meet the needs of SMEs and women-owned businesses.”
The initiative is anticipated to increase the availability of financing for at least 50 businesses, including 29 in the industrial and agricultural sectors, 9 in the renewable energy sector, and 13 in the healthcare sector.
A minimum of 1000 employment will be generated, and about 14 female entrepreneurs will be able to obtain long-term investment as a result.
FCMB’s Managing Director, Yemisi Edun, said, “We are happy to collaborate with the African Development Bank to create expanded opportunities and accelerate post-COVID-19 pandemic business recovery for SMEs and women-owned businesses in Nigeria through funding and technical support.
“We are intentional about collaboration that upskills entrepreneurs, drives industrialisation, and creates economic value, wealth and employment for Nigerians.”
According to her, the deal demonstrated the African Development Bank‘s faith in the capacity of FCMB to expand and corporate governance frameworks.
Two pillars serve as the foundation for the African Development Bank’s current Nigeria strategy: fostering social inclusion through agribusiness and skill development; and supporting infrastructure development.
It currently has 53 operations in Nigeria, with a total market value of US$4.5 billion. The value of the 23 non-sovereign activities is US$1.8 billion, while the value of the thirty sovereign businesses is US$2.7 billion.
