FMO (The Dutch Entrepreneurial Development Bank) have announced the signing of a US$25 million NASIRA guarantee agreement with Nigeria’s First City Monument Bank Limited (FCMB), which will help FCMB expand its funding to agricultural, youth, and women-owned SMEs without requiring collateral.
Funded by the European Commission, NASIRA is one of FMO’s most innovative programmes, which encourages local banks to provide funding to small entrepreneurs without collateral, with FMO providing a guarantee instead. The guarantee is often not fully utilized, showing that these entrepreneurs actually are not as risky as they are perceived to be.
Says FMO:
Job creation in Nigeria is critical: it’s home to 220 million people, faces high unemployment, and has strong currency depreciation. Through this investment, FCMB will help high-risk groups start and expand their businesses, leading to much-needed income generation.
Alongside the NASIRA guarantee, we’re also providing a USD 60 mln syndicated loan so FCMB can grow its existing loan portfolio of SMEs, with FMO contributing USD 20 mln, FMO IM contributing USD 10 mln, and USD 30 mln through the European Financing Platform, on behalf of of BIO – the Belgian Investment Company for Developing Countries, DEG, European Investment Bank (EIB), Finnfund, Proparco, and Swedfund International. We jointly look forward to further leveraging private sector investments for job and income creation for Nigerian youth and women!