British International Investment (BII), the UK’s development finance institution and impact investor, has committed $50 million to Access Bank.
This commitment is part of a larger $295 million loan package arranged by FMO, the Dutch entrepreneurial development bank.
According to a statement by BII, the funding aims to bolster Access Bank’s capital base, enabling it to better support underserved Small and Medium Enterprises (SMEs), particularly those led by women and youth.
This move is expected to provide these SMEs with essential working capital and enhance their resilience amid Nigeria’s most severe economic crisis in a generation.
“BII’s commitment is part of a $295 million loan package led by FMO to the leading Nigerian bank.
The funding will strengthen Access Bank’s capital base and allow it to support SMEs, including women and youth, to improve their access to finance,” the finance institution said.
Nairametrics reported that Access Bank collaborated with the Dutch Entrepreneurial Development Bank (FMO) to sign a syndicate Tier II Facility agreement valued at $295 million (approximately N442,500,000,000).
Direct and indirect investments
According to the statement, since 2018, BII has provided direct and indirect investments to the bank supporting its ambitious expansion plans in Africa.
It stated that there are nearly 40 million MSMEs in Nigeria, accounting for 86 per cent of employment and contributing 50 per cent to the GDP. Despite their importance to the Nigerian economy, many SMEs businesses face challenges with accessing finance.
“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 finance institution said.
What the stakeholders said
Jonny Baxter, British Deputy High Commissioner, said that when smaller businesses and women entrepreneurs are economically empowered, their whole community benefits.
Baxter noted that, 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 with the Nigerian Government to deepen our economic co-operation, boost growth and development opportunities across our countries,” he said.
Benson Adenuga, Head of Office and Coverage Director, Nigeria at British International Investment, said that as a counter cyclical investor, the company is proud to deepen its 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,” he said.
Roosevelt Ogbonna, Managing Director/Chief Executive Officer of Access Bank Plc, said: “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”.
He noted that the facility not only enhances the bank’s capital reserves but also strengthens Africa’s trade capabilities and export potential.
He added that putting these funds to use, the bank aims 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.