To boost access to finance for smaller businesses in Nigeria and support increased trade, IFC today announced a partnership with Union Bank of Nigeria Plc to help the bank expand lending to hundreds of businesses operating in critical sectors of the country, including food, health care, manufacturing, and services.
IFC’s $30 million loan will enable Union Bank to increase trade financing and working capital lending to Nigerian businesses, including those whose cash flows have been affected by recent disruptions in global and local markets.
“As a bank, we are deeply committed to enabling SMEs to succeed. We understand the critical role of small businesses in driving the Nigerian economy towards growth. This IFC financing will allow us to extend financial relief to our clients during this difficult time. I am confident that the funds will help these companies seize opportunities and preserve jobs,” said Mudassir Amray, CEO and CEO of Union Bank.
“Strengthening supply chains and trade flows through working capital financing lays the foundation for faster growth and economic diversification in Nigeria. IFC’s partnership with Union Bank is part of a broader strategy to ensure that the flow of goods and services is sustained despite disruptions to global trade.” said Kalim M. Shah, IFC’s senior country manager for Nigeria, Liberia and Sierra Leone.
The credit line to Union Bank is made through IFC’s COVID-19 emergency response working capital solutions package, which was launched in 2020 to provide financing to existing IFC clients in emerging markets who will then make new loans. to companies affected by the economic impacts of COVID-19.
Recent disruptions to the global economy following COVID-19, including rising inflation and limited access to finance, have left many businesses in Nigeria, particularly SMEs, struggling with supply chain shortages. supply, rising cost of doing business and limited trade growth.
The partnership with Union Bank underscores IFC’s commitment to supporting smaller businesses in Nigeria, helping them preserve and create jobs and access critical inputs.
The loan announced today is backed by the International Development Association’s Private Sector Window blending facility, which mitigates the financial risks associated with investments in sectors such as SMEs and agribusiness.
IFC has an active investment portfolio of $2.3 billion in Nigeria, the second largest in Africa after South Africa, in sectors including agribusiness, healthcare, manufacturing, infrastructure, technology, and financial services.
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries and use our capital, experience and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, harnessing the power of the private sector to end extreme poverty and boost shared prosperity as economies grow. grapple with the impacts of aggravated global crises. For more information, visit www.ifc.org.
About the IDA Private Sector Window
The International Development Association (IDA) Private Sector Window was launched in 2017 to catalyze private sector investment in the poorest and most fragile countries. Recognizing the key role of the private sector in achieving IDA’s goals and the World Bank Group’s twin goals, the window provides a source of co-investment financing and guarantees to reduce the risk of IFC-supported private investments and the Multilateral Investment Guarantee Agency (MIGA) . The IDA PSW is an option when there is no commercial solution and the other World Bank Group tools and approaches are insufficient. For more information, visit: http://ida.worldbank.org/psw
About Union Bank of Nigeria
Established in 1917 and listed on the Nigerian Stock Exchange in 1971, Union Bank of Nigeria Plc. is a household name and one of Nigeria’s long-standing and most respected financial institutions. The Bank is a trusted and recognizable brand, with an extensive network of more than 250 branches in Nigeria.
The Bank currently offers a variety of banking services to individual and corporate customers, including checking, savings and deposit account services, funds transfer, direct debit of foreign currency, loans, overdrafts, equipment leasing and trade financing. The bank also offers its customers convenient electronic banking channels and products, including online banking, mobile banking, USSD banking, debit cards, ATMs, and POS systems. More information can be found at: www.unionbankng.com