Access Bank Plc and the United States International Development Finance Corporation (DFC) have agreed to provide $280 million in support for small and medium-sized businesses (SMEs).
The deal would close the financing gap for SMEs, according to a statement released by the US Embassy on Monday.
In Lagos, the commitment letter was signed by Roosevelt Ogbonna, managing director of Access Bank, and Scott Nathan, chief executive officer of DFC.
In his comment, Nathan stated that given the COVID-19 pandemic-related global economic slowdown, the DFC financing for Access Bank will provide necessary liquidity.
He further stated that at least 4,000 new SME loans in Nigeria were anticipated to be supported by the intervention.
Nathan noted that the loan proceeds would be on-lent across more than a dozen sectors in the Nigerian economy with specific focus on women-owned SMEs, and loans with longer tenors to provide more flexibility to borrowers.
He said: “The loan will help address the financing gap for small- and medium-sized enterprises (SMEs) and advance financial inclusion in Nigeria, including through the bank’s commitment to supporting women-owned and -led businesses.
“DFC’s investment in Access Bank demonstrates US 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.”
On her part, the US Ambassador to Nigeria, Mary Leonard said she looked forward to discussion with the public and private sectors on how the DFC funding could be leveraged to unleash the full economic potential of Nigeria through support to the country’s SMEs, financial sector, and climate change-focused enterprises.
