The International Development Finance Corporation (DFC) has signed a $280million loan deal with the Access Bank to boost small businesses in Nigeria.
The deal was signed on Monday by DFC Chief Executive Officer (CEO), Scott Nathan and Access Bank Managing Director, Roosevelt Ogbonna, during Nathan’s visit to West Africa.
Confirming the deal in a statement signed by the U.S. Consulate General in Nigeria, the US commission 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.”
The DFC boss said that “DFC’s investment in Access Bank demonstrates U.S. support for private sector-led development in Nigeria and throughout West Africa,” adding that “The $280 million loan from DFC will boost financial inclusion in Nigeria and empower women, bolstering the country’s economic growth.”
Also speaking, the U.S. Ambassador Mary Beth Leonard, said, “We welcome the U.S. International Development Finance Corporation CEO Scott Nathan to Nigeria,” saying that “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.”
On his part, the Access Bank MD noted that “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.”
Similarly, the Head of Emerging Markets Corporate Bank, Rizwan Shaikh, Citi EMEA, said, “We are delighted to have collaborated with Access Bank and DFC on this significant transaction, which will significantly boost SME corporate activity in Nigeria.
“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.”
According to the deal, 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 specific focus on women-owned SMEs, and on loans with longer tenors, which will provide more flexibility to borrowers.