DFC, the U.S. International Development Finance Corporation, has agreed to invest $280m in Access Bank in Nigeria alongside Access Bank Managing Director Roosevelt Ogbonna.

The loan will help address the financing gap for small- and medium-sized enterprises (SMEs) and advance financial inclusion in Nigeria, including through the bank’s commitment to supporting women-owned and -led businesses.

“DFC’s investment in Access Bank demonstrates U.S. support for private sector-led development in Nigeria and throughout West Africa,” said DFC CEO Scott Nathan.

“The $280m loan from DFC will boost financial inclusion in Nigeria and empower women entrepreneurs, bolstering the country’s economic growth.”

Access Bank is one of the largest banks in Nigeria and has banking subsidiaries throughout Africa. Citibank acted as the coordinator and arranger/co-lender to help facilitate the loan.

DFC financing for Access Bank will provide needed liquidity given the global economic downturn caused by the COVID-19 pandemic.

The loan is expected to support at least 4,000 new SME loans in Nigeria. In addition, the loan proceeds will be on-lent across more than a dozen sectors in the Nigerian economy, with specific focus on women-owned SMEs, and on loans with longer tenors, which will provide more flexibility to borrowers.

“Access Bank is extremely pleased to announce this strategic partnership with DFC to support the multitude of businesses across Nigeria who stand to benefit from greater access to finance, especially in an environment that is in need of stronger economic diversification, said Roosevelt Ogbonna, Managing Director of Access Bank.

“We look forward to utilizing the partnership with DFC in driving further economic expansion and inclusion in Nigeria, with a strong focus on non-oil sectors and women businesses.” 

Citi has  collaborated with Access Bank and DFC on this transaction, which will significantly boost SME corporate activity in Nigeria, said Rizwan Shaikh Citi EMEA Head of Emerging Markets Corporate Bank.

“This is yet another milestone stride for Citi as it executes a focused local-economy development strategy based on solid partnerships with key clients and development agencies.”