USAID, FCMB Partner To Expand Access For SMEs, Health Sector Financing In Nigeria

The United States Agency for International Development (USAID) has a partnership agreement with First City Monument Bank (FCMB) to facilitate access to financing of private enterprises and the health sector in Nigeria.

USAID Mission Director, Melissa Jones, who made this known during a ceremony held at FCMB Headquarters in Lagos affirmed the U.S. government’s commitment to strengthen Nigeria’s health sector and private sector resilience.

A statement from the US Diplomatic Mission to Nigeria, Public Affairs Section, explained that under the terms of the agreement, USAID and the United States International Development Finance Corporation (DFC) will collaborate with FCMB to facilitate $10 million in loans. The statement said the new partnership will assist FCMB to expand access to finance for underserved borrowers, women and youth, the health sector, and small and medium-sized enterprises throughout Nigeria.

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Jones said the U.S. government believes that such initiative would help improve access to credit for the underserved, especially women and youth, to stimulate economic growth across the country.

“As demonstrated by this partnership, the United States government is eager to continue collaborating with the financial sector to improve access to credit for underserved borrowers, especially women and youth, and thereby stimulate economic growth,” Jones stated.

The USAID Mission Director added that aside from the aspect that deals with health sector financing, they are also committed to offering loans in collaboration with FCMB to finance agriculture and renewable energy sectors through their existing partnerships.

FCMB Managing Director, Mrs Yemisi Edun, who commended DFC’s commitment to improving local access to quality healthcare, noted that the deal would help close the gap in healthcare financing in Nigeria.

“This means more Nigerians will have access to better healthcare facilities. First City Monument Bank welcomes the opportunity to collaborate with healthcare providers and small & medium enterprises nationwide to build a healthier, more productive future for our nation,” Edun stated.

Areas the Partnership will cover

The partnership is intended to boost the following key areas:

Loans in the Healthcare Sector: Loans will be used to support areas including hospitals, health centers, clinics, diagnostic centers, pharmacies, maternal health facilities, procurement of medical equipment, construction and renovation of health facilities.

Loans to MSMEs: The bank’s focus will include MSMEs from all sectors of the economy, financial support for working capital, equipment procurement, construction, and restructuring of commercial properties for business.

Loans to the Underserved Populations: The bank will support informal businesses, with priority for businesses in the informal sector and businesses owned and operated by youth and women.