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First City Monument Bank (FCMB) of Nigeria and the African Development Bank have agreed to a $50 million line of credit agreement to promote the access to capital for women-owned and small- and medium-sized businesses (SMEs) (WEBs). FCMB would support SMEs and WEBs in Nigeria’s agribusiness, manufacturing, healthcare, and renewable energy sectors with the money from the Line of Credit. The money is meant to lessen the impact of the difficulties brought on by the COVID-19 pandemic on the commercial environment in which the beneficiary businesses operate.
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Additionally, as part of its Affirmative Finance Action for Women in Africa (AFAWA) project, the African Development Bank will collaborate with FCMB through a technical support grant of US$200,000 from the Women Entrepreneurship Finance Initiative (WeFi). The FCMB will use the award funds to expand its monitoring and reporting capabilities for WEBs, give training, and provide non-financial services.
Improved access to financing for at least 50 businesses is another result anticipated from this operation, of which 29 are predicted to be in manufacturing and agribusiness, nine in renewable energy, and 13 in the healthcare sector. At least 14 female entrepreneurs would receive assistance in obtaining long-term investment, and 1,000 new or preserved employment will be generated.
Up to 80% of jobs in most African nations are held by small and medium-sized businesses, and women-owned businesses frequently experience significant financing gaps. The COVID-19 epidemic has had a significant negative impact on the Nigerian economy, and dropping crude oil prices have also had a negative impact on the economy as a whole.
“The FCMB is a financial institution that has consistently shown a dedication to assisting and funding small and medium-sized businesses as well as women entrepreneurs. The African Development Bank is happy to collaborate with them. Through this partnership, FCMB will increase its financial assistance to this underserved population and promote the development of the Nigerian economy “said Lamin Barrow, Director General of the Nigeria Country Department at the AfDB.
In line with the African Development Bank’s High-5 strategic priorities to “Industrialize Africa” and “Feed Africa,” according to Lamin, the focus and goals of the Bank’s collaboration with FCMB are to promote gender inclusivity, private sector development, industrialization, food security, and job creation in the Bank’s regional member countries.
The project is in line with the goals of the Bank’s AFAWA initiative, which seeks to increase gender inclusion by facilitating women entrepreneurs’ access to capital. The Women Entrepreneurs Finance Initiative, a partnership located in the World Bank Group, intends to open up finance for women-owned enterprises in developing nations. The African Development Bank is one of the initiative’s implementing partners.
“We are pleased to collaborate with the African Development Bank to create expanded opportunities and hasten the post-COVID-19 pandemic business recovery for small, medium-sized, and women-owned businesses in Nigeria through funding and technical support,” said Managing Director of FCMB Limited, Yemisi Edun. We deliberately pursue partnerships that help entrepreneurs become more skilled, promote industrialization, and generate income, wealth, and employment for Nigerians.
Added her “This partnership demonstrates that AfDB has a genuine belief in FCMB’s ability to grow, in the robust corporate governance systems we have established, and in our track record of success. We are still committed to giving our clients and other stakeholders the tools they need to realize their professional and personal goals “.
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. The Bank thinks that its financing and non-lending activities offer several opportunities for women and young people.
The Bank now has 53 activities in Nigeria, with a total market value of $4.5 billion. A total of 30 sovereign operations totaling $2.7 billion make up this, accounting for 60% of all obligations. There are also 23 non-sovereign operations worth $1.8 billion.
First City Monument Bank is a member of FCMB Group Plc, a holding company for financial services that is run by Ladi Balogun in the capacity of Group Chief Executive. It is a commercial banking organization with goals beyond profit. By removing lending restrictions for underprivileged people and small enterprises, the Bank is devoted to COVID-19 recovery, income equality, and the decrease of poverty.
