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VENO NEWS: FirstBank Partners with CDC/BII to Support Women and Small Business Owners with a US$100 million Credit Facility
Date: 8-O3-22

First Bank of Nigeria Limited, Nigeriaâ€™s premier and leading financial inclusion services provider, has announced its partnership with CDC Group, the UK Governmentâ€™s development finance institution on a US$100 million finance facility to FirstBank. This new facility will direct funding to women-owned and led businesses as well as to local small and medium-sized enterprises (SMEs) in Nigeria.

The deal will support FirstBank to deliver financial solutions that help to address the challenge of limited access to capital faced by underbanked and underserved groups in the country. As part of the new facility, a minimum of US$30 million will be allocated in the form of credit lines to women entrepreneurs. The facility will also support FirstBankâ€™s â€˜FirstGemâ€™ gender-focused services offering, which takes steps to promote gender inclusion by improving lending and support to female entrepreneurs.

The new partnership between CDC, which will be renamed British International Investment in April, and FirstBank demonstrates a shared mission to spur sustainable, productive and inclusive growth in Nigeria.

CDCâ€™s commitment will facilitate an expanded offer by FirstBank to its clientele, which will accelerate financial inclusion and increase opportunities for marginalised groups, including an estimated 59 million unbanked Nigerians, to participate in the countryâ€™s formal economy. As such, the partnership will capitalise on the FirstBankâ€™s expansive network of over 700 branches and 150,000+ agents, leveraging its market leading expertise to scale financial solutions to underbanked entrepreneurs and populations.

In addition, CDC/BII will support FirstBank with a technical assistance programme which will build on the Bankâ€™s knowledge base of the women-led and women-owned businesses in its portfolio, strengthening the Bankâ€™s technical capabilities and ability to reinforce its commitment to gender-based initiatives. This will enable the Bank to further leverage the facility to provide vital funding to scale business growth across Nigeriaâ€™s market â€“ increasing job creation and improving livelihoods throughout the country.

The facilityâ€™s target to increase financial inclusion and opportunities for women, qualifies this facility under the 2x Challenge â€“ a commitment by the development finance institutions (DFIs) of the G7 to mobilise capital to support increased economic empowerment for women in emerging economies. Moreover, the US$100 million commitment aligns with the UNâ€™s Sustainable Development Goal 5 Gender Equality and Goal 8 Decent Work and Economic Growth.

Nick Oâ€™Donohoe, Chief Executive of CDC Group, said: â€œPromoting financial inclusion is a key component for advancing sweeping productive and sustainable growth across both rural and urban areas in Nigeria. This facility will channel CDCâ€™s flexible and long-term capital toward expanding the financial solutions made available to women entrepreneurs, who are often the drivers of small business ideas and services to their communities.

â€œOur commitment demonstrates a deepening of British partnership with Nigeriaâ€™s businesses, as we collaborate to unlock the potential for entrepreneurial success and economic growth across the country.â€

Adesola Adeduntan, Managing Director / Chief Executive Officer, FirstBank said: â€œBeyond themutual benefits this partnership offers to both organisations, this transaction offers yet, another occasion for FirstBank to contribute immensely, to the United Nation Sustainable Development Goals.

â€œEnabling financial inclusion for SMEs has been a strategic priority for FirstBank over the last 128 years. Similarly, FirstBank has been at the forefront of financially empowering women-owned and women-led businesses on the continent. This partnership with CDC/BII offers a fantastic opportunity to accelerate the momentum.

â€œAt FirstBank, we remain ever committed to fostering financial inclusion, creating wealth for the underserved, enhancing access to quality education and health care, improving lives and empowering women.â€

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