US government and FCMB collaborated to distribute $10 million in loans throughout Nigeria
US government and FCMB collaborated to distribute $10 million in loans throughout Nigeria
To enable $10 million in loans to be given to Nigeria’s business and health sectors, the US government has partnered with First City Monument Bank (FCMB). At a ceremony conducted at FCMB’s headquarters in Lagos, representatives from the U.S. Agency for International Development (USAID) announced this collaboration.
Under the terms of this agreement, FCMB will receive support from USAID and the US International Development Finance Corporation (DFC) to increase access to financing for underserved borrowers in Nigeria, with a focus on women, youth, the health sector, and small and medium-sized enterprises (SMEs).
The loan will assist hospitals, clinics, pharmacies, health and diagnostic centers, and maternal health facilities in the healthcare industry with the purchase of medical equipment, including any necessary building or repairs.
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FCMB will offer financial assistance to Micro, Small, and Medium-Sized Enterprises (MSMEs) for construction, working capital, equipment acquisition, and commercial property restructuring.
The loan program gives priority to underprivileged Nigerians, particularly those who own and operate informal enterprises, women-owned businesses, and businesses in the informal sector.
The managing director of FCMB, Yemisi Edun, praised the DFC for its dedication to enhancing local access to high-quality healthcare, highlighting that the collaboration will contribute to closing the finance gap for healthcare and giving more Nigerians access to better medical facilities.
The U.S. government is keen to work with the banking sector to improve loan availability for marginalized borrowers, spur economic expansion, and assist industries like renewable energy and agriculture, according to Melissa Jones, director of USAID Nigeria Mission.
With a payback period of up to 36 months, FCMB now provides an annual interest rate of 16 percent, inclusive of all charges and expenses. A maximum loan amount of N100 million is available.
With money from DFC and USAID, the bank will oversee loan repayment and handle the entire loan process, including evaluating loan applications and distributing funds.
