The Dutch entrepreneurial development bank FMO and Nigeria’s First City Monument Bank (FCMB) have signed a $25 million agriculture guarantee agreement.
The guarantee will enable FCMB to expand its funding to agricultural development, youth and women-owned SMEs without requiring collateral, targeting a client group typically deemed too risky by banks.
This was announced at the side-lines of the 9th Nigeria-EU Business Forum, by the Deputy Director General, Directorate of International Partnerships (INTPA), European Commission, Myriam Ferran.
Ferran said the project, funded by the European Commission, is one of FMO’s most innovative programs, encouraging local banks to extend their funding to small entrepreneurs without collateral.
She added that job creation in Nigeria, with over 220 million people is critical to the continent
as the country faces severe economic challenges, including high unemployment and a significant 70% depreciation of its currency over the past year.
The loan is dedicated to growing the existing FCMB loan portfolio of small and medium-sized entrepreneurs (SMEs).
The transaction also contains a technical assistance program.
FMO and FCMB will identify 15 business models that address pressing problems in the agricultural sector, contributing to sustainable development goals, zero hunger and food security.and tree planting in rural areas
Editor Oloyede Oworu
