- Citibank Gives Accion MfB N500m Loan
Citibank Nigeria has extended a loan of N500m to Accion Microfinance Bank to promote the development of the microfinance sector in Nigeria.
The loan will fund Accion’s loan portfolio and support the development of approximately 5,000 Micro, Small and Medium-scale Enterprises in the country, according to a statement by the lender.
It said the agreement would also support the Central Bank of Nigeria’s National Financial Inclusion Strategy to reduce the number of excluded population by bringing them into the formal banking fold.
A 2012 survey by the Enhancing Financial Innovation and Access indicated that 39.7 per cent or 34.9 million adult Nigerians were excluded from financial services.
The NFIS focuses on working with financial institutions to increase access of the unbanked population to banking products under affordable terms and conditions with the overall objective to empower people, promote savings culture, increase productivity and reduce poverty, according to the statement.
The Managing Director, Citibank Nigeria, Mr. Akin Dawodu, said the bank was committed to working with microfinance partners in support of the NFIS by availing credit to the MSMEs in the country.
He was quoted as saying, “We are delighted to partner microfinance enablers such as OPIC and Accion MFB for the benefit of the SMEs and micro entrepreneurs, thereby contributing to the economic development of the country.”
The Managing Director/Chief Executive Officer, Accion MfB, Mrs. Bunmi Lawson, said, “This funding from Citibank will enable Accion Microfinance Bank to expand its financial services to a larger number of micro entrepreneurs across the country leading to economic empowerment and job creation for more Nigerians.
“We hope that other financial institutions will emulate Citibank by providing loans to the microfinance banks which will in turn ensure that we truly meet the credit needs of the average Nigerian entrepreneur.”
The loan is part of a long-term business partnership between the Citi Inclusive Finance (Citi’s specialised unit for microfinance and inclusive finance transactions) and the Overseas Private Investment Corporation, the United States government’s development finance institution, to provide financing in local currencies to leading microfinance institutions operating in frontier and emerging markets around the world.
“The OPIC is committed to helping underserved populations gain access to more finance opportunities,” according to the Acting OPIC President and Chief Executive Officer, Dev Jagadesan,
He added, “OPIC recognises the positive impact that microfinance institutions have on local economies throughout frontier markets. We are proud to partner Citi and Accion Microfinance Bank to expand access to financial services in Nigeria.”
According to Accion MfB’s managing director, the MfB’s core values, business philosophy and methodology continue to distinguish it as a leading microfinance bank in Nigeria.
Lawson said the bank’s mission “is to economically empower micro-entrepreneurs and low-income earners by providing financial services in a sustainable, ethical and profitable manner.”
Listed by the London Stock Exchange as one of the Companies to inspire Africa in 2017, Accion MfB has won the Lagos State Enterprise award for Best Microfinance Bank in Lagos State multiple times.
It also won the EFInA award for the Service Provider that Deepens Financial Inclusion in Nigeria, for its impact on socio-economic development.
