L-R: Scott Nathan, DFC CEO, and Roosevelt Ogbonna, Managing Director, Access Bank
One of Nigeria’s leading financial institutions, Access Bank has signed a commitment letter with the United States International Development Finance Corporation (DFC) for $280 million to help address the financing gap for small- and medium-sized enterprises (SMEs).
According to the US Embassy, this was contained in a commitment letter signed by DFC CEO, Scott Nathan, and Access Bank Managing Director, Roosevelt Ogbonna in Lagos.
Nathan said the DFC financing for Access Bank would provide needed liquidity given the global economic downturn caused by the COVID-19 pandemic and also support at least 4,000 new SME loans in Nigeria.
He noted that the loan proceeds would be on-lent across more than a dozen sectors in the Nigerian economy, with a specific focus on women-owned SMEs, and on loans with longer tenors, which will provide more flexibility to borrowers.
“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,” he added.
Also, the US Ambassador to Nigeria, Mary Leonard said she looked forward to discussing with the public and private sectors how DFC funding could 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.
Commenting on the commitment, Managing Director of Access Bank, Roosevelt Ogbonna, said “Access Bank is extremely pleased to announce the 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 was in need of stronger economic diversification.
According to him, “We look forward to utilising the partnership with DFC in driving further economic expansion and inclusion in Nigeria, with a strong focus on non-oil sectors and women businesses.”