Citi Bank lifts MSMEs with N500 million
The development of Nigeria’s Micro Small and medium Scale Enterprises (MSME) has been given a boost by Citi bank with injection of fresh funds that would affect 5,000 entrepreneurs.
The support came through enhancing the capacity of Nigeria’s micro finance institution, aimed at ensuing availability of loanable funds for the micro and small enterprises to positively impact Nigerian economy through MSME window.
To achieve more economic vibrancy at the micro level, Citi Nigeria, extended a loan of N500 million to Accion Microfinance Bank (Accion MFB) in Nigeria to drive and promote the development of the microfinance sector in Nigeria.
The loan, Citi Nigeria said, is part of a long term business partnership between Citi Inclusive Finance, Citi’s specialized unit for microfinance and inclusive finance transactions, and the Overseas Private Investment Corporation (OPIC), the U.S. government’s development finance institution, to provide financing in local currencies to leading microfinance institutions operating in frontier and emerging markets around the world.
Acting OPIC President and Chief Executive Officer, Dev Jagadesan, said that OPIC prides its partnership with Citi and Accion Micro Finance Bank and that OPIC is committed to helping underserved populations gain access to more finance opportunities. “OPIC recognizes the positive impact that microfinance institutions have on local economies throughout frontier markets” said the OPIC Acting president.
Akin Dawodu, Citi Nigeria CEO, said that Citi is committed to working with microfinance partners in support of the national financial inclusion strategy by availing credit to micro and small enterprises in Nigeria.
Dawodu said “We are delighted to partner microfinance enablers, such as, OPIC and Accion MFB for the benefit of SMEs and micro entrepreneurs, thereby contributing to the economic development of the country.”
The loan is expected to fund Accion’s loan portfolio and support the development of approximately 5000 micro and small enterprises in the country.
The agreement will also support the Central Bank of Nigeria’s National Financial Inclusion Strategy (NFIS), to reduce the number of excluded population by bringing them into the formal banking fold. As at 2012, according to a survey by the Enhancing Financial Innovation and Access (EFInA), about 39.7 per cent or 34.9 million adult Nigerians were excluded from financial services.
The NFIS focuses on working with financial institutions to increase access of the unbanked population to banking products under affordable terms and conditions with the overall objective to empower people, promote savings culture, increase productivity and reduce poverty.
Mrs. Bunmi Lawson, MD/CEO, Accion MFB, said that the fund from Citibank will enable Accion Microfinance Bank expand its financial services to a higher number of micro entrepreneurs across the country leading to economic empowerment and job creation for more Nigerians.
“We hope that other financial institutions will emulate Citibank by providing loans to the Microfinance banks which will in turn ensure that we truly meet the credit needs of the average Nigerian entrepreneur”
Lawson said that Accion MfB core values, business philosophy and methodology continue to distinguish it as the leading Microfinance Bank in Nigeria. Their mission is “To economically empower micro-entrepreneurs and low income earners by providing financial services in a sustainable, ethical and profitable manner.”
Listed by the London Stock Exchange as one of the companies to inspire Africa in 2017, Accion Microfinance Bank has won the Lagos State Enterprise (LEAD) award for Best Microfinance Bank in Lagos State several times, the EFInA award for the Service Provider that Deepens Financial Inclusion in Nigeria, for its impact on socio-economic development, its contributions to sustainable development, and its commitment to financial inclusion in Nigeria.
This loan is part of a long term business partnership between Citi Inclusive Finance, Citi’s specialized unit for microfinance and inclusive finance transactions, and the Overseas Private Investment Corporation (OPIC), the U.S. government’s development finance institution, to provide financing in local currencies to leading microfinance institutions operating in frontier and emerging markets around the world.
