International Finance Corporation (IFC) is providing a loan of up to $50 million to Access Bank to help the bank increase liquidity to thousands of small and medium-sized enterprises (SMEs) in Nigeria which are navigating the economic challenges of COVID-19.
The funds from the loan, made available through IFC’s global COVID-19 fast-track financing support package, will allow Access Bank to provide increased trade financing and working capital to their business clients experiencing disrupted cash flows, supporting business activity and preserving jobs.
Herbert Wigwe, chief executive of Access Bank, said: “In Nigeria, SMEs contribute over 45% of national GDP, account for about 96% of businesses and 84% of employment. Access Bank, therefore, recognises the importance of SMEs to economic stability and is going the extra mile to ensure that such businesses are adequately financed to weather these testing times.
“IFC’s funding will not only enable us to extend financial relief to our clients across all sectors during the pandemic but beyond the COVID-19 crisis as well. Our partnership with IFC will help Nigerian businesses weather COVID-19 and set a course for recovery.”
Eme Essien Lore, IFC country manager for Nigeria, said: “It is crucial to support smaller businesses to keep Nigeria’s economy going during this unprecedented economic challenge. IFC’s longstanding partnership with Access Bank means together we can move much-needed funding to businesses that need it most, helping them remain in business and retain their employees.”
IFC’s $8 billion global COVID-19 fast track facility, launched in March 2020 to support business activity and preserve jobs in the face of COVID-19, has so far invested nearly $400 million through the facility in Africa.