The Dutch entrepreneurial development bank FMO has announced a landmark USD 295 million syndicated loan facility to Access Bank, Nigeria’s leading financial institution. This facility, the largest syndication in FMO’s history, aims to bolster underserved Small and Medium Enterprises (SMEs) in Nigeria, particularly those led by women and youth, providing crucial access to working capital amidst the country’s most severe economic crisis in a generation.
The syndication partners include the UK’s development finance institution British International Investment, Belgium’s BIO, impact investor BlueOrchard, Canada’s FinDev Canada, Finland’s Finnfund, Norway’s Norfund, social impact investor Oikocredit, and Sweden’s Swedfund. This consortium of international development financiers underscores the global commitment to supporting Nigeria’s economic resilience and SME sector growth.
Nigeria is home to nearly 40 million micro, small, and medium enterprises (MSMEs), which account for 86 percent of employment and contribute 50 percent to the nation’s GDP. Despite their critical role in the economy, many small businesses in Nigeria struggle with accessing finance due to stringent collateral requirements, high interest rates, and lack of formal credit history. The newly arranged syndicated loan facility aims to alleviate these challenges by expanding Access Bank’s capital reserves, thereby enabling it to offer much-needed working capital and financing to Nigerian businesses across various sectors, including agriculture.
Roosevelt Ogbonna, CEO of Access Bank, expressed his enthusiasm about the agreement, stating: “This monumental syndicate Tier II Facility agreement underscores the deep-rooted trust and synergy between our institutions. For us at Access, 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.”
Michael Jongeneel, CEO of FMO, also highlighted the significance of the partnership: “We extend our gratitude to our longstanding partner Access Bank and our syndication partners for their outstanding cooperation and collective effort in making this loan facility a reality. The syndicated loan provides significant support to SMEs in Nigeria, particularly underserved segments such as women and young entrepreneurs, aligning perfectly with our shared strategy to enhance financial inclusion and empower local entrepreneurs in the agribusiness and SME sectors.”
This historic loan facility represents a significant boost to Nigeria’s SME sector, promising to stimulate business growth, create more jobs, and deepen financial inclusion in Africa’s most populous country.
