SMEs Won’t Succeed Without Adequate Support- FCMB

Nigerian Small and Medium Enterprises need huge support and intense exposure to contribute better to economy, according to tier-two lender First City Monument Bank.

The lender said this in a statement to commemorate this year’s International MSME Day.

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Official data from the the National Bureau of Statistics and the Small and Medium Enterprises Development Agency of Nigeria shows that SMEs in Nigeria accounts for about 96 per cent per cent of registered businesses.

Over 84 per cent of the entire labour force is attributed to SMEs, while they contribute 48 per cent to Nigeria’s Gross Domestic Product.

The Group Head, Business Banking of the Bank, Mr. George Ogbonnaya, said the bank recognises the role of SMEs as catalysts for sustainable development.

“SMEs in Nigeria have what it takes to compete at the highest level in the international market, but without the requisite exposure and support, it can be very difficult to succeed.

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“We strongly believe that SMEs need genuine support to play a frontal role in the development of individuals, communities and the country in general, especially as the world battles to overcome the negative effects of COVID-19.

“We are also inspired by the fact that our market-leading propositions and support to SMEs have consistently made real impact on businesses and the economy in general. We will continue to provide the right platform and opportunities to empower our customers to take their businesses to greater heights”.

The bank explained that it secured a $50m loan facility from the International Corporation (IFC), a member of the World Bank Group, to help it expand lending to businesses.

FCMB further revealed that it has provided over N23bn loan to SMEs with inadequate collateral coverage or those in start-up stage.

The bank disclosed that it had processed over 25,000 digital loans with disbursements hitting an average of N7.5bn in a month.

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