Victor EzejaUnited States International Development Finance Corporation has invested $280 million in Access Bank for financing scheme to boost small and medium-sized enterprises (SMEs) in Nigeria.
DFC CEO, Scott Nathan alongside Access Bank Managing Director, Roosevelt Ogbonna, signed a commitment letter for the financing on Monday, July 25.
According to a statement from the Public Affairs Section of the US Consulate General office in Lagos, the loan will help address the financing gap for SMEs and advance financial inclusion in Nigeria, including through the bank’s commitment to supporting women-owned businesses.
Commenting on the financing scheme, Scott Nathan said, “DFC’s investment in Access Bank demonstrates U.S. support for private sector-led development in Nigeria and throughout West Africa.
“The $280 million loan from DFC will boost financial inclusion in Nigeria and empower women, bolstering the country’s economic growth.”
U.S. Ambassador to Nigeria Mary Beth Leonard, welcomed the U.S. DFC CEO, Scott Nathan to Nigeria, and said “We look forward to discussing with the public and private sectors how DFC funding can be leveraged to unleash the full economic potential of Nigeria through support to the country’s small and medium-sized businesses, financial sector, and climate change-focused enterprises.”
Managing Director, Access Bank, Roosevelt Ogbonna, said, “Access Bank is extremely pleased to announce this strategic partnership with DFC to support the multitude of businesses across Nigeria who stand to benefit from greater access to finance, especially in an environment that is in need of stronger economic diversification.”
“We look forward to utilizing the partnership with DFC in driving further economic expansion and inclusion in Nigeria, with a strong focus on non-oil sectors and women businesses,” Ogbonna added.
“We are delighted to have collaborated with Access Bank and DFC on this significant transaction, which will significantly boost SME corporate activity in Nigeria,” said Rizwan Shaikh Citi EMEA Head of Emerging Markets Corporate Bank. “This is yet another milestone stride for Citi as it executes a focused local-economy development strategy based on solid partnerships with key clients and development agencies.”
DFC financing for Access Bank will provide needed liquidity given the global economic downturn caused by the COVID-19 pandemic. The loan is expected to support at least 4,000 new SME loans in Nigeria. In addition, the loan proceeds will be on-lent across more than a dozen sectors in the Nigerian economy, with a specific focus on women-owned SMEs, and on loans with longer tenors, which will provide more flexibility to borrowers.
Access Bank is one of the largest banks in Nigeria and has banking subsidiaries throughout Africa. Citibank acted as the coordinator and arranger/co-lender to help facilitate the loan.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
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