Access Bank obtains $50m to support SMEs
By Esther Agbo
British International Investment (BII), the UK’s development finance institution and impact investor, has committed $50 million to Access Bank. This funding is part of a larger $295 million loan package arranged by FMO, the Dutch entrepreneurial development bank.
According to BII, this financial support aims to bolster Access Bank’s capital base, enabling it to better assist underserved Small and Medium Enterprises (SMEs), particularly those led by women and youth. The infusion of capital is expected to provide these SMEs with essential working capital, enhancing their resilience amid Nigeria’s severe economic challenges.
Access Bank and FMO signed a syndicate Tier II Facility agreement valued at $295 million (approximately N442.5 billion). Since 2018, BII has provided both direct and indirect investments to support Access Bank’s expansion plans in Africa.
There are nearly 40 million MSMEs in Nigeria, accounting for 86 percent of employment and contributing 50 percent to the GDP. Despite their importance, many SMEs struggle with accessing finance.
The finance institution said, “The commitment from BII will help to strengthen Access Bank’s capital reserves and provide much needed working capital and financing to Nigerian SMEs across various sectors including agriculture.
“This will help to stimulate business growth, create more jobs and deepen financial inclusion in Nigeria, which is the most populous country in Africa.”
The British Deputy High Commissioner, Jonny Baxter, highlighted the impact of empowering smaller businesses and women entrepreneurs on community development. He emphasised the UK’s support for Access Bank to help businesses in underserved communities access finance, scale operations, create jobs, and grow the economy.
“It also shows our commitment with the Nigerian Government to deepen our economic co-operation, boost growth and development opportunities across our countries.”
Furthermore, the Head of Office and Coverage Director, Nigeria at BII, Benson Adenuga, expressed pride in deepening the partnership with Access Bank to accelerate Nigeria’s recovery and empower businesses crucial for job creation, innovation, and economic diversification.
He said, “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/CEO of Access Bank Plc, Roosevelt Ogbonna, described the syndicate Tier II Facility agreement as a significant milestone in the bank’s partnerships with FMO and BII. He noted that the facility enhances the bank’s capital reserves and strengthens Africa’s trade capabilities and export potential.
By utilising these funds, Access Bank aims “to catalyse growth across various sectors, stimulate business development, create jobs, and deepen financial inclusion, in line with its mission to drive progress and development across the continent and beyond.”
