Business a.m.
The British International Investment (BII), in collaboration with FMO, has pledged a $50 million commitment to Access Bank as part of a $295 million loan package designed to boost the bank’s capital base and provide essential support to underserved Small and Medium Enterprises (SMEs) in Nigeria.
The strategic investment, especially in the face of Nigeria’s most severe economic crisis in a generation, aims to strengthen the resilience of SMEs, particularly those led by women and youth, by providing access to working capital and fostering growth in the challenging economic environment.
The BII recognised Access Bank as a key player in the Nigerian banking sector, acknowledged for its commitment to supporting businesses and fostering growth. With its expansive presence across the African continent and its dedicated efforts to provide funding, capacity building, and networking opportunities to businesses, BII has been an active partner in supporting Access Bank’s ambitious expansion plans in Africa since 2018.
Drawing from industry reports, the UK based development finance institution and impact investor, highlighted the critical role played by Micro, Small and Medium Enterprises (MSMEs) in the Nigerian economy, with nearly 40 million such enterprises accounting for a staggering 86 per cent of employment and contributing approximately 50 percent to the country’s GDP.
It noted that despite their immense contribution to Nigeria’s economy, SMEs face significant challenges in securing financing, with many businesses struggling to access the capital they need to grow and thrive.
According to the BII, the $50 million commitment to Access Bank will serve as a significant boost to the bank’s capital reserves, allowing it to provide much needed financing and working capital to SMEs across various sectors, particularly in the agricultural sector.
This strategic investment, which aims to stimulate business growth, create jobs and deepen financial inclusion in Nigeria, is expected to leverage the country’s position as the most populous in Africa to drive sustainable economic development and address the critical funding gaps faced by SMEs.
Reflecting on the significance of the partnership between the BII and Access Bank, Jonny Baxter, British deputy high commissioner, highlighted the importance of supporting smaller businesses and women entrepreneurs.
Baxter further explained that the UK’s strategic support, delivered through the BII, is geared towards enabling SMEs in underserved communities to gain access to the financing they need to scale their operations, create jobs and drive economic growth in Nigeria.
“It also shows our commitment with the Nigerian Government to deepen our economic co-operation, boost growth and development opportunities across our countries,” he added.
Benson Adenuga, head of office and coverage director, Nigeria at British International Investment, remarked: “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.”
Commenting on the significance of the BII investment and the Tier II Facility agreement, Roosevelt Ogbonna, managing director/chief executive officer of Access Bank Plc, acknowledged the bank’s strong relationship with FMO, the Dutch Entrepreneurial Development Bank.
Ogbonna added: 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, aligning with Access Bank’s mission to drive progress and development throughout the continent and beyond.”
FMO’s leadership in arranging the Tier II Facility agreement has attracted the participation of a diverse coalition of seven other leading development finance institutions (DFIs) and impact investors, including BIO, Blue Orchard, FinDev Canada, FinnFund, Norfund, Oikocredit, and Swedfund.
BII’s contribution to the agreement, which aims to strengthen Access Bank’s capital base and support SMEs in Nigeria, particularly those led by women, also contributes to the realisation of the United Nations’ Sustainable Development Goals 5 (Gender Equality) and 8 (Decent Work and Economic Growth).
