Wema Bank Announces N1bn Loan Support For SMEs

In a drive to promote clean energy, Wema Bank Plc has announced a N1 billion loan support for Small and Medium Enterprises (SMEs) that desire to purchase clean and renewable energy solutions like solar panels, inverters, and batteries.

The bank noted that the loans will be availed in partnership with reputable renewable energy companies and service providers in Nigeria, adding that the partners shall offer after-sales services and a warranty of up to 2 years on the renewable energy products. 

Investors King understands that a higher percentage of businesses in the country, including SMEs, depend on fossil fuel for power to run their operations amidst poor power supply and the incessant collapse of the national grid.

Similarly, Nigeria currently produces less than 5000 megawatts of electricity for more than 200 million population and several thousands of businesses. Thereby, many homes and businesses rely on electricity generators. Consequently, the spike in the prices of fossil fuel products has hit many businesses hard.

Speaking on the initiative, the Divisional Head, Retail Business, Wema Bank Plc, Mr Dotun Ifebogun, noted that the renewable-energy-focused loans will provide relief to small and medium-sized enterprises across the country by cushioning the effect of the high cost of energy on their businesses.

He said, “we need to provide financial support to SMEs to encourage their roles as the engine rooms of the economy, by creating alternative power options at affordable rates and educating them on the benefits of alternative power in solar energy, to the environment”.

Furthermore, Mr Dotun Ifebogun disclosed that the loan initiative also reflects Wema Bank’s strategic goal of spearheading energy transition in Nigeria and helping businesses in the country to go green. 

He said, ” Amidst the devastating environmental havoc caused by fossil fuels around the world, the need for clean energy alternatives cannot be overemphasised. The widespread use of petrol and diesel generators by businesses and households in the country releases tons of greenhouse gases into the atmosphere and causes environmental pollution.”