AfDB signs $50m deal with FCMB

The African Development Bank (AfDB) has signed a 50-million-dollar line of credit agreement with First City Monument Bank (FCMB) to support access to finance for small and medium-sized businesses and women-owned businesses.

Chukwuemeka Ezekiel, AfDB Group, Nigeria Country Department, revealed this in a statement.

FCMB will use the credit line to expand lending activities that will aid the nation’s post-pandemic economic recovery and promote inclusive and climate-resilient growth. It will focus on businesses in Nigeria’s manufacturing, healthcare, and renewable energy sectors.

According to Lamin Barrow, the AfDB’s director-general for Nigeria, the AfDB’s support for FCMB will advance the goals of the Affirmative Finance Action for Women in Africa (AFAWA) initiative.

The initiative aims to increase gender inclusivity by making it easier for women entrepreneurs to access financing.

With at least 30 percent of the funding from the Line of Credit to be channeled to women-owned businesses, FCMB will be better positioned to scale up the deployment of its tailored products and services.  

The aim is to meet the needs of SMEs and women-owned businesses, Barrow said. 

FCMB’s managing director, Yemisi Edun said,

We are happy to collaborate with the AfDB. Through funding and technical assistance, the goal is to increase opportunities and hasten …-COVID-19 pandemic business recovery for SMEs and women-owned businesses in Nigeria. 

We are intentional about collaboration that upskills entrepreneurs, drives industrialization and creates economic value, wealth, and employment for Nigerians.

According to Edun, the agreement demonstrated the bank’s faith in FCMB’s capacity for growth and corporate governance frameworks.  

FCMB will use the line of credit to increase lending activities that will accelerate the nation’s post-pandemic economic recovery and promote inclusive and climate-resilient growth, according to the statement. 

It would also focus on enterprises in Nigeria’s agribusiness, manufacturing, healthcare, and renewable energy sectors. 

Meanwhile, the AfDB also provides a complementary technical assistance package of 285,000 dollars under its AFAWA initiative. 

The grant funding would enhance financial literacy, business management, and entrepreneurial skills for women-led businesses and strengthen FCMB’s monitoring and reporting functions. 

The Women Entrepreneurship Finance Initiative provides the funding.