AfDB, Fortis MFB seal N1bn SMEs loan agreement

African Development Bank (AfDB) and Fortis Microfinance Bank plc yesterday in Abuja signed a N1 billion loan facility to be used for onward lending to small and medium enterprises (SMEs) in Nigeria.

This partnership, which is expected to boost Nigeria’s private sector development through financing of projects that are strategically aligned to the country’s development agenda, has been hailed as a welcome development for the nation’s troubled economy.

Speaking at the agreement-signing event, Ousmane Dore, the country director, AfDB, underscored the importance of strengthening micro finance initiatives, adding, “Unless those at the bottom of the pyramid have access to finance, poverty will remain a major development issue.”

Dore re-affirmed the Bank’s commitment to promote inclusive, private sector-led growth and employment creation in Nigeria and across the continent.

Tiko Okoye, managing director/CEO Fortis MFB, remarked, “The collaboration with the African Development Bank has added a significant boost to the realisation of our dreams of empowering more Nigerian households through the SMEs.

SMEs, according to Okoye, across all climes are the engine of most economies, Nigeria and Africa inclusive, adding that a more formidable SME sector will lead to a stronger Nigerian economy.

“Fortis Microfinance Bank Plc will ensure the full implementation of the intentions of the scheme in order to achieve the set objectives of AfDB which include providing access to finance, reduction of poverty and developing the Nigerian economy,” Okoye assured.

The partnership BusinessDay gathered falls under the AfDB’s Africa SME Program, which provides medium to long- term lines of credit to small local financial institutions, enabling these institutions to on-lend to more SMEs at longer tenures and affordable terms. With support from the Fund for Africa Private Sector Assistance (FAPSA), technical assistance and capacity building programs are also offered to these institutions to build their SME portfolios and support SME clients.

Amadi Nnamdi