UK Commits $50m to Small Businesses in Nigeria
British International Investment, the United Kingdom’s development finance institution and impact investor, recently announced a $50m commitment to Access Bank for businesses.
A statement from BII said that the facility was part of a $295m loan package arranged by FMO, the Dutch entrepreneurial development bank.
There are nearly 40 million MSMEs in Nigeria, accounting for 86 per cent of employment and contributing 50% to the Gross Domestic Product (GDP).
The DFI stated that despite their importance to the Nigerian economy, many SME businesses face challenges with accessing finance, a challenge that can be eased with this funding.
British Deputy High Commissioner, Jonny Baxter, commenting on the deal, said, “When smaller businesses and women entrepreneurs are economically empowered, their whole community benefits. That is why the UK is providing new support with Access Bank to help businesses in underserved communities access finance to scale up their operations, create jobs, and grow the economy. It also shows our commitment to the Nigerian Government to deepen our economic cooperation and boost growth and development opportunities across our countries.”
The Head of Office and Coverage Director, Nigeria at British International Investment, Benson Adenuga, said, “As a counter-cyclical investor, we are proud to deepen our partnership with Access Bank to accelerate Nigeria’s recovery and empower businesses playing a pivotal role in the creation of jobs, innovation, and economic diversification. By supporting the ambitions of SMEs including women and youth-led businesses, we can ensure a more inclusive and sustainable future for Nigeria.”
The Managing Director/Chief Executive Officer of Access Bank, Roosevelt Ogbonna, commented, “Today marks a significant milestone in our longstanding partnerships with FMO and BII. This monumental syndicate Tier II Facility agreement underscores the deep-rooted trust and synergy between our institutions.
“This facility not only enhances our capital reserves but also strengthens Africa’s trade capabilities and export potential. By putting these funds to use, we aim to catalyse growth across various sectors, stimulate business development, create jobs, and deepen financial inclusion, aligning with Access Bank’s mission to drive progress and development throughout the continent and beyond.”
BII noted that the deal contributed to the United Nations’ Sustainable Development Goals 5 and 8, on Gender Equality, Decent Work, and Economic Growth.
