The United States government has partnered with First City Monument Bank to facilitate $10 million in loans across Nigeria’s health and private sectors.
The partnership was announced Wednesday at a ceremony held at FCMB’s headquarters in Lagos, alongside representatives of The U.S. Agency for International Development (USAID).
Under the terms of the agreement, USAID and the United States International Development Finance Corporation (DFC) will assist FCMB to expand access to finance for underserved borrowers, women and youth, the health sector, and small and medium-sized enterprises throughout Nigeria.
In healthcare, the loan will support hospitals, health and diagnostic centres, clinics, pharmacies, and maternal health facilities with procurement of medical equipment, including construction and renovations where necessary.
For Micro, Small and Medium-sized Enterprises (MSMEs), FCMB will initiate financial support for working capital, including equipment procurement, construction, and restructuring of commercial properties for business.
The loan program also includes provisions for Nigeria’s underserved population with priority for businesses in the informal sector and businesses owned and operated by youth and women.
“I commend the DFC for its commitment to improving local access to quality healthcare. This partnership will help close the gap in healthcare financing. This means more Nigerians will have access to better healthcare facilities,” said Yemisi Edun, managing director FCMB.
“FCMB welcomes the opportunity to collaborate with healthcare providers and small & medium enterprises nationwide to build a healthier, more productive future for our nation,” she added.
Speaking on the partnership, Melissa Jones, director at USAID Nigeria Mission said, “As demonstrated by this partnership, the United States government is eager to continue collaborating with the financial sector to improve access to credit for underserved borrowers, especially women and youth, and thereby stimulate economic growth.
“In addition to this health loan portfolio, we are committed to work with FCMB to disburse loans to the agriculture and renewable energy sectors through our existing partnerships.”
FCMB presently offers an annual interest rate of 16 percent inclusive of all charges and fees, with a repayment tenor extending up to 36 months. Maximum loan obtainable is capped at N100 million.
The bank will manage the loan process through the DFC and USAID provided funds, including assessing loan applications, disbursing funds, and overseeing repayment.
