LAGOS, Nigeria (VOICE OF NAIJA)-First City Monument Bank (FCMB) has launched a new initiative to expand its support for small and medium-sized enterprises (SMEs) across Nigeria.
This follows the signing of a $25 million agreement with the Dutch Entrepreneurial Development Bank and the European Commission.
The goal of this partnership is to provide agricultural, youth, and women-owned businesses with greater access to funding, bypassing the usual need for collateral.
According to a statement the initiative seeks to empower a client base often deemed high-risk by traditional banks, showcasing a dedication to fostering inclusive economic growth.
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“The Dutch Entrepreneurial Development Bank and Nigeria’s First City Monument Bank signed a $25m NASIRA guarantee agreement. The guarantee will enable FCMB to expand its funding to agricultural, youth, and women-owned SMEs without requiring collateral, targeting a client group typically deemed too risky by banks,” the statement partly read.
As per the statement funded by the European Commission, NASIRA eliminates the requirement for collateral by substituting it with a guarantee from FMO.
This enables FCMB to substantially broaden its lending activities.
FMO, the Dutch entrepreneurial development bank, supports private sector growth in developing countries and emerging markets through investments in projects and entrepreneurs.
The approach challenges the notion that entrepreneurs, particularly women and young people, present greater financial risks in the sector.