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The operation consists of a USD 35 million loan and a EURIZ portfolio guarantee of NGN 5 billion (EUR 10 million equivalent) to support First City Monument Bank Ltd (FCMB) strategy to serve high-impact SMEs and for climate finance. Proparco and FCMB have already had the opportunity to collaborate through two FMO-arranged operations in 2014 and 2019 and the provision of two ARIZ guarantees signed in 2018 and 2020.

In Nigeria, micro, small and medium enterprises (MSMEs) represent 96% of the country's businesses. They create jobs (84% of employment) and contribute to national wealth (48% of national GDP). However, access to financing is their main challenge today.

One of Nigeria’s most SME friendly banks, First City Monument Bank Limited, is well positioned to offer financing solutions adapted to these companies. It is a specialized organization that has developed a solid digital offering, the Quickloan platform, for SMEs.  The bank has strong growth ambitions in this segment.

FCMB was recognised as the Best SME Bank in Nigeria at the Asian Banker Middle East and Africa Regional Awards for the second year running. It is recently the most decorated bank by development finance institutions in Nigeria, with nine awards in the last four months, for its impact on the segment. Proparco's intervention in both financing and risk sharing will enable FCMB to strengthen its positioning in the high-impact SME segment and in climate projects. Proparco's financing supports FCMB's objective of promoting the financial inclusion of women through the SheVentures program implemented by FCMB in 2019 which offers women entrepreneurs dedicated solutions such as interest-free and concessional loans, as well as adapted training and mentoring. As such, the project is eligible for the 2X Challenge.

As for the EURIZ portfolio guarantee, it will provide a 70% guarantee for the bank's loans to high-impact SMEs: SMEs run by women or young people, SMEs operating in the agriculture, education, health and digital sectors, young startups or green SMEs. Launched in May 2019 with the support of the European Union and the European Development Fund, as well as the African, Caribbean and Pacific (OACPS) Group of States, the EURIZ guarantee aims to facilitate access to credit for SMEs, particularly in high-impact development sectors, in order to help them play their essential role in economic growth and job creation. It is also part of Choose Africa, a French initiative targeting African SMEs.

By collaborating with FCMB, a key player in SME financing in Nigeria, AFD Group is facilitating the financing of local economic players who are facing the impact of the Covid-19 crisis. The project aims to foster the development of the local private sector in sectors and segments that are critical to achieving sustainable and inclusive economic growth. As a result, it will contribute to SDG 8 ("Decent Work and Economic Growth"), 5 ("Gender Equality"), 7 ("Clean Energy"), and 13 ("Combating Climate Change").

 

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Further reading

nigeria fcmb
Page projet (PROPARCO)

FCMB 2021

Projet FCMB
Page projet (PROPARCO)

FCMB 2014