A member of the World Bank Group, The International Finance Corporation (IFC), has announced a $50 million loan to First City Monument Bank (FCMB) Limited to help it expand lending to small and medium enterprises (SMEs).
It is expected that this will enable small business operators sustain business activities disrupted by the COVID-19 pandemic and stay afloat.
The loan, made through IFC’s COVID-19 fast-track financing support package, reflects the multilateral institution’s commitment to Nigeria’s private sector following the severe challenges brought by the health and economic crisis. A statement from the bank said.
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.”
In the words of Eme Essien Lore, IFC’s Country Manager, “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 2020 to support existing clients through direct lending to affected companies and to financial institutions so they can continue lending to their clients and help to preserve and create jobs.
IFC’s portfolio in the country stands at $1.3 billion in sectors including manufacturing, financial services, infrastructure and technology. With a network of 205 branches, FCMB serves more than 4.5 million customers in Nigeria.