International Finance Corporation, a member of the World Bank Group, has approved $50 million loan for First City Monument Bank (FCMB) Limited to help it expand lending to small and medium enterprises (SMEs).
The loan is to enable SMEs sustain businesses disrupted by the COVID-19 pandemic.
The loan, made through IFC’s COVID-19 fast-track financing support package, reflects IFC’s commitment to Nigeria’s private sector following the severe challenges brought by the health and economic crisis.
The funds will allow FCMB to support hundreds of businesses with trade financing and working capital loans.
IFC’s portfolio in Nigeria stands at $1.3 billion in sectors, including manufacturing, financial services, infrastructure and technology.
FCMB’s Chief Executive Adam Nuru said:“IFC’s loan facility will allow us to keep credit flowing to SMEs as well as corporate companies across all sectors of Nigeria’s economy, including in the health, pharmaceutical, food and trading industries.”
IFC’s Country Manager for Nigeria Eme Essien Lore said: “Supporting financial institutions like FCMB is vital to keeping smaller businesses solvent, saving jobs, and limiting economic damage in the face of a challenge as formidable as COVID-19.
Although Nigeria has a strong and dynamic private sector, it needs liquidity now to ensure it remains viable during and after COVID-19.”
IFC’s $8 billion global COVID-19 fast-track facility was launched in March to support clients through direct lending to affected firms and to financial institutions so they could continue lending to their clients and help to preserve and create jobs.