Citi Nigeria extended a loan of N500 million to Accion Microfinance Bank (Accion MFB) in Nigeria to drive and promote the development of the microfinance sector in Nigeria.
This loan will fund Accion’s loan portfolio and support the development of approximately five thousand micro and small enterprises in the country.
The agreement will also support the Central Bank of Nigeria National Financial Inclusion Strategy (NFIS) to reduce the number of excluded population by bringing them into the formal banking fold.
As at 2012, according to a survey by the Enhancing Financial Innovation and Access (EFInA), about 39.7% 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.
While commenting on the development, Citi Nigeria CEO, Mr. Akin Dawodu said Citi is committed to working with Microfinance partners in support of the national financial inclusion strategy by availing credit to micro and small enterprises in Nigeria.
“We are delighted to partner with microfinance enablers such as OPIC and Accion MFB for the benefit of SMEs and micro entrepreneurs, thereby contributing to the economic development of the country”, he said.
Also speaking on the importance of the loan, Mrs. Bunmi Lawson MD/CEO Accion MFB, noted that the funding from Citibank will enable Accion Microfinance Bank 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 entrepreneu”, she said.
He said that the loan will o economically empower micro-entrepreneurs as well as low-income earners by providing financial services in a sustainable, ethical and profitable manner.
This loan is part of a long term business partnership between Citi Inclusive Finance, Citi’s specialized unit for microfinance and inclusive finance transactions, and the Overseas Private Investment Corporation (OPIC), the U.S. government’s development finance institution, to provide financing in local currencies to leading microfinance institutions operating in frontier and emerging markets around the world.
Acting OPIC President and Chief Executive Officer, Dev Jagadesan, said that OPIC recognises the positive impact that microfinance institutions have on local economies throughout frontier markets saying we are proud to partner with Citi and Accion Microfinance Bank to expand access to financial services in Nigeria.
Isaiah Erhiawarien
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