First City Monument Bank Secures $50m Grant From AfDB To Support Women-owned SMEs In Nigeria

Posted by Eric Ojo Business News, Latest Headlines Saturday, November 5th, 2022

(AFRICAN EXAMINER) – First City Monument Bank (FCMB) has secured a $50 million line of credit from the African Development Bank (AfDB) to support access to finance for small and medium-sized women-empowered enterprises in Nigeria.

FCMB Limited is a member of FCMB Group Plc, which is one of the leading financial services institutions in Nigeria with subsidiaries that are market leaders in their respective segments. Having successfully transformed to a retail and commercial banking-led group.

The bank has continued to distinguish itself by delivering exceptional services, while enhancing the growth and achievement of the personal and business aspirations of its customers. FCMB is committed to COVID-19 recovery, income equality and poverty reduction by easing credit constraints to disadvantaged individuals and small businesses.

FCMB will use the line of credit to expand lending activities that will boost the country’s post-pandemic economic recovery and drive more inclusive and climate-resilient growth. It will focus on enterprises in Nigeria’s agribusiness, manufacturing, healthcare and renewable energy sectors.

The AfDB is also providing a complementary technical assistance package of $285,000 under its Affirmative Finance Action for Women in Africa (AFAWA) initiative.

The grant funding, provided by the Women Entrepreneurship Finance Initiative (We-Fi), will support enhancing financial literacy, business management and entrepreneurial skills for women led businesses as well as strengthening FCMB’s monitoring and reporting functions.

The AfDB’s Director General for Nigeria, Lamin Barrow said the Bank’s support to FCMB will advance the objectives of the AFAWA initiative, which seeks to improve gender inclusivity by enhancing access to finance for women entrepreneurs.

“With at least 30 percent of the funding from the Line of Credit to be channelled to women owned businesses, FCMB will be better positioned to scale up the deployment of its tailored products and services to meet the needs of SMEs and women-owned businesses”, he said.

While commending the AfDB for the support, the Managing Director of FCMB, Yemisi Edun said: “We are happy to collaborate with the African Development Bank to create expanded opportunities and accelerate post-COVID-19 pandemic business recovery for SMEs and women-owned businesses in Nigeria through funding and technical support. We are intentional about collaboration that upskills entrepreneurs, drives industrialisation, and creates economic value, wealth and employment for Nigerians”.

Adun said the agreement affirmed the AfDB’s confidence in FCMB’s growth potential and corporate governance structures.

The project is expected to improve access to finance for at least 50 enterprises: 29 in the agribusiness and manufacturing sectors, 9 in renewable energy and 13 in the healthcare industry. It will create a minimum of 1000 jobs and enable roughly 14 female entrepreneurs to gain access to long-term funding.

The Bank anchors its current Nigeria strategy on two pillars: supporting infrastructure development and promoting social inclusion through agribusiness and skills development. Its current Nigeria portfolio comprises 53 operations with a total value of $4.5 billion. Thirty of these operations, with a value of $2.7 billion, are sovereign operations; the 23 non-sovereign operations have a value of $1.8 billion.