The UK’s impact investor and development finance organization, British International Investment (BII), has given Access Bank a $50 million commitment.
The Dutch entrepreneurial development bank FMO prepared a broader $295 million financing package that included this promise.
The money is intended to strengthen Access Bank’s capital basis, enabling it to better support Small and Medium Enterprises (SMEs) that are underserved, especially those headed by women and young people, according to a statement released by BII.
This action is anticipated to boost these SMEs’ resilience in the face of Nigeria’s worst economic crisis in a generation and give them access to vital working finance.
“The largest bank in Nigeria is receiving a $295 million loan package led by FMO, which includes BII’s commitment.”
The financial institution stated, “The funding will strengthen Access Bank’s capital base and allow it to support SMEs, including women and youth, to improve their access to finance.”
Recall we reported that Access Bank and the Dutch Entrepreneurial Development Bank (FMO) signed a $295 million (about N442,500,000,000) syndicated Tier II Facility deal.
Direct & Indirect Investments
The statement claims that since 2018, BII has given the bank direct and indirect funding in support of its aggressive expansion plans throughout Africa.
According to the report, there are almost 40 million MSMEs in Nigeria, which generate 86% of all jobs and 50% of the country’s GDP. Even though SMEs are vital to the Nigerian economy, many of them have trouble obtaining financing.
“The commitment from BII will help to strengthen Access Bank’s capital reserves and provide much-needed financing and working capital to Nigerian SMEs across various sectors, including agriculture.”
The finance organisation stated, “This will help to stimulate business growth, create more jobs, and deepen financial inclusion in Nigeria, which is the most populous country in Africa.”
Stakeholders’ statements
The entire society gains when women entrepreneurs and smaller enterprises are given more financial clout, according to British Deputy High Commissioner Jonny Baxter.
According to Baxter, this is the reason the UK is extending new support through Access Bank to assist companies in marginalized areas in obtaining funding so they may expand, generate employment, and strengthen the economy.
He continued, “It also demonstrates our commitment to strengthening our economic cooperation, boosting growth and development opportunities across our countries with the Nigerian government.”
British International Investment’s Head of Office and Coverage Director for Nigeria, Benson Adenuga, stated that the company is pleased to strengthen its partnership with Access Bank as a countercyclical investor in order to hasten Nigeria’s recovery and enable businesses that are essential to job creation, innovation, and economic diversification.
“We can guarantee a more inclusive and sustainable future for Nigeria by fostering the aspirations of SMEs, including women- and youth-led enterprises,” he declared.
Access Bank Plc’s Managing Director and Chief Executive Officer, Roosevelt Ogbonna, stated: “Today marks a significant milestone in our longstanding partnerships with FMO and BII. This historic syndicate Tier II Facility agreement demonstrates our institutions’ deep trust and synergy.”
He pointed out that the facility boosts Africa’s commerce and export potential in addition to increasing the bank’s capital reserves.
He continued by saying that the bank hopes to use the money in a way that will further Access Bank’s objective of promoting progress and development throughout the continent and beyond by stimulating business development, deepening financial inclusion, creating jobs, and catalyzing growth across multiple sectors.
