Nigeria’s Access Bank gets $295m to support small businesses
TLDR
- Access Bank Plc secures $295 million syndicated loan to support small businesses in Nigeria.
- Fundraising led by Dutch development bank FMO, supported by international lenders.
- Loan aims to empower local SMEs, focusing on youth, women-owned businesses, and agricultural enterprises.
Nigeria’s largest lender by assets, Access Bank Plc, has secured a $295 million syndicated loan from foreign lenders to support small businesses struggling with high borrowing costs and accelerating inflation.
The Dutch development bank FMO led the fundraising, with contributions from British International Investment, the Belgian Investment Company for Developing Countries, and funds from Canada, Finland, Norway, and Sweden, among others, according to an emailed statement from Access Bank.
The funds will be used to "empower local small- and medium-sized enterprises, with a particular focus on underserved segments such as youth and women-owned businesses, agricultural enterprises, and very small enterprises," the Nigerian lender said.
Key Takeaways
Nigeria is grappling with various challenges, including inflation, food shortages, and insecurity, resulting in an alarming unemployment rate of 33%. With a population of 230 million, more than half of whom are under 30, the urgency for job creation and workforce development is critical. Micro, small, and medium-sized enterprises (MSMEs) play a vital role in sustainable development and poverty reduction. However, access to funds and the high cost of obtaining them are major obstacles for small businesses in Nigeria's increasingly difficult operating environment. According to central bank data, small borrowers are accessing commercial loans at a steep rate of 28.67%.
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