The Dutch Entrepreneurial Development Bank (FMO) and Nigeria’s First City Monument Bank (FCMB) have formalized a $25 million NASIRA guarantee agreement to enhance funding for agricultural, youth, and women-led small and medium-sized enterprises (SMEs) in Nigeria.
This innovative program, funded by the European Commission, enables FCMB to extend credit to these enterprises without requiring collateral.
NASIRA aims to encourage local banks to support small entrepreneurs by substituting collateral with a guarantee, which often highlights that these entrepreneurs, particularly women and young people, are not inherently riskier.
In addition to the NASIRA guarantee, FMO will provide FCMB with a $60 million syndicated loan: $20 million from FMO, $30 million from the European Financing Platform, and $10 million from FMO Investment Management. This funding will bolster FCMB’s SME loan portfolio.
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At the signing ceremony during the 9th Nigeria EU Business Forum, EU Ambassador to Nigeria and ECOWAS, Samuela Isopi, praised the EU’s investment tools, emphasizing their role in fostering private sector investment, economic diversification, and job creation, particularly for youth and women.
The initiative also includes selecting 15 scalable agri-tech businesses in Nigeria to support innovative solutions addressing agricultural challenges, contributing to the Sustainable Development Goal of zero hunger and food security.
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