British International Investment (BII), a UK development finance institution and impact investor, has announced a $50 million commitment to Access Bank, a leading Nigerian bank. This funding is part of a larger $295 million loan package arranged by the Dutch development bank FMO.
Purpose of the Funding
The commitment from BII aims to:
Strengthen Access Bank’s Capital Base: Enhancing the bank’s financial stability.
Support Underserved SMEs:
Providing access to working capital for Small and Medium Enterprises (SMEs), particularly those led by women and youth.
Boost Economic Resilience:
Helping Nigerian businesses navigate and recover from the country’s severe economic challenges.
Statements from Key Stakeholders
Benson Adenuga, Head of Office and Coverage Director, Nigeria, British International Investment:
– “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.”
Roosevelt Ogbonna, Managing Director/Chief Executive Officer, Access Bank Plc**:
– “Today marks a significant milestone in our longstanding partnership with FMO, the Dutch Entrepreneurial Development Bank. 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. Putting these funds to use, we aim to catalyse growth across various sectors, stimulate business development, create jobs, and deepen financial inclusion.”
Jonny Baxter, British Deputy High Commissioner:
– “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.”
Impact on the Nigerian Economy
Nigeria has nearly 40 million MSMEs, accounting for 86% of employment and contributing 50% to the GDP.
Despite their importance, many SMEs face significant challenges in accessing finance. The funding from BII will help mitigate these challenges by providing much-needed working capital and financing to SMEs across various sectors, including agriculture.
Broader Financial Collaboration
In addition to FMO, BII’s commitment is supported by other development finance institutions (DFIs) and impact investors such as:
– BIO
– Blue Orchard
– FinDev Canada
– FinnFund
– Norfund
– Oikocredit
– Swedfund
This commitment aligns with the United Nations’ Sustainable Development Goals 5 and 8, focusing on Gender Equality, Decent Work, and Economic Growth.
