The International Finance Corporation (IFC), a member of the World Bank Group, has approved a $50 million loan for First City Monument Bank (FCMB) for lending to small and medium enterprises.
In a statement on Thursday, IFC said the loans would help sustain businesses that were disrupted by the COVID-19 pandemic.
The loan was facilitated through IFC’s COVID-19 fast-track financing support package, which it describes as a reflection of its commitment to Nigeria’s private sector.
“IFC’s loan facility will allow us to keep credit flowing to SMEs as well as corporate companies across all sectors of Nigeria’s economy, including in the health, pharmaceutical, food and trading industries,” Adam Nuru, FCMB’s chief executive, said.
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Eme Essien Lore, IFC country manager, said: “Supporting financial institutions like FCMB is vital to keeping smaller businesses solvent, saving jobs, and limiting economic damage in the face of a challenge as formidable as COVID-19”.
“Although Nigeria has a strong and dynamic private sector, it needs liquidity now to ensure it remains viable during and after COVID-19.”
According to the statement, IFC launched its $8 billion global COVID-19 fast-tracking facility in March 2020 to support existing clients through direct lending to affected companies and financial institutions so they can continue lending to their clients and help to preserve and create jobs.
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Zenith Bank got a similar loan from the IFC on June 18 to the tune of $100 million to help the bank increase support to clients and businesses whose cash flows have been disrupted by the pandemic.
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