IFC Invests N7.67bn In Union Bank To Support SMEs, Others 

The International Finance Corporation (IFC) has announced a N7.67 billion ($25 million) investment in Union Bank Plc to enable it issue loans to Small and Medium Enterprises in Nigeria.

The IFC disclosed on Thursday that the facility would cover over 50% of the risk of Union Bank’s loans to entrepreneurs, adding that the loans would aid business growth and create more jobs in the country.

The body also said that the loan would further enhance Union Bank’s plans to offer more credit to women, which is a move to narrow gender inequality.

According to IFC, the north and the delta regions would also benefit from the initiative, as it was difficult for SMEs in the regions to access funds and other credit facilities.

According to Chief Executive of Union Bank, Emeka Emuwa, “Union Bank continues to develop sustainable products and services that promote enterprise and address poverty and financial inclusion.

“This is in line with our commitment to support the communities within which we operate. The IFC facility is a welcome development which will further deepen our efforts to support Nigerian SMEs and women.”

Similarly, the IFC’s Country Manager for Nigeria, Eme Essien Lore, said that the “IFC’s risk sharing facility will help Union Bank increase its focus on Nigeria’s underserved areas, positioning it as one of the leading banks that provide customised services to SMEs that are driving job creation and growth across the country.”

The IFC is a sister body to the World Bank, and the Union Bank investment is a part of the Small Loan Guarantee Program (SLGP), to lend local currencies to SMEs in developing countries. ,The World bank had revealed in a survey that 85% of SMEs in the country lack access to bank loan or credit. The Central Bank of Nigeria had consequently increased the Loan to Deposit Ratio for Nigerian banks to 65% to help SMEs and Large firms secure loans in the country so as to boost economic activities.