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First City Monument Bank (www.fcmb.com) has stated that its increased and consistent support for small and medium-sized enterprises (SMEs) aims to further empower them to take the lead in the growth and development of the Nigerian economy. This is because, according to the bank, SMEs are one of the main drivers of the country’s pursuit of economic prosperity because of their potential to create jobs, reduce poverty, boost production and economic activity.

To that end, the lender has urged business owners to keep up with the current and emerging realities in order to make their respective businesses productive and competitive, which will lead to progress for them and the country.

The FCMB announced this in a statement on the occasion of this year’s International MSME Day, which takes place every June 27th. The annual event provides an opportunity to raise public awareness of the contribution of such businesses to ensuring sustainable development, poverty reduction, empowerment and other benefits.

A recent survey by the National Bureau of Statistics (NBS) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) shows that SMEs in Nigeria make up about 96% of registered businesses, employ about 84% of the total workforce and employ 48% contribute to the country’s gross domestic product (GDP).

As a leading financial company in Nigeria, FCMB has built a strong base and dominated the SME segment by consistently offering various innovative solutions through its main pillars. These are access to capital, capacity building, advisory services, networking opportunities and technology. The FCMB’s SME advisory service provides market information and technical support for businesses, access to intervention funds in collaboration with development finance institutions (DFIs), and provision of credit enhancement facilities to mitigate credit risk and collateral gaps when lending to SMEs.

Commenting on the importance of the International SME Day and the FCMB’s commitment to businesses, the bank’s Group Head, Business Banking, Mr George Ogbonnaya, said the day is very important for the financial institution as a major player in global business.

According to him:

“We recognize 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 required presence and support it can be very difficult to succeed. We strongly believe that SMEs need real support to play a leadership role in the development of individuals, communities and the country in general, especially as the world struggles to overcome the negative effects of COVID-19. “

He added:

“We’re also inspired by the fact that our market leading offerings and support for SMBs consistently have real impact on businesses and the economy in general. We will continue to provide the right platform and opportunities to enable our customers to grow their business. “

Last year, FCMB secured a $ 50 million loan facility from the International Corporation (IFC), a member of the World Bank Group, to expand lending to SMEs to improve their sustainability following the disruptions caused by the COVID-19 pandemic to guarantee. The IFC Facility, which demonstrates the strong trust that global organizations and the market place in FCMB, has enabled it to provide trade finance and working capital loans to multiple companies. So far, the bank has provided loan guarantees of over N 23 billion to SMEs with insufficient collateral or those in the start-up phase.

The bank has also taken on a pioneering role in digitization by automating its lending process for SMEs via the FCMB Quick lending platform. The lender has so far used this channel to disburse more than N 90 billion in loans to entrepreneurs. It processes over 25,000 digital loans with payouts averaging N 7.5 billion per month.

For female-owned SMEs, FCMB has launched a solid offering called SheVentures, which provides enhanced support through access to finance, training and mentoring with the unique benefit of zero interest rates for an initial three month period. Hundreds of female-owned SMEs have benefited from zero interest loans ranging from N500,000.00 to N5 million. In total, nearly 15,000 of these companies have benefited from various FCMB SheVentures funding and training initiatives since 2019.

It’s also worth noting that FCMB has been very active in the renewable energy space by providing capacity building meetings, access to finance and providing opportunities for developers and end users to connect in meaningful and productive ways. The bank has entered into loan enhancement agreements worth N 20.9 billion to support renewable and energy efficient projects. The aim is to improve the energy supply, increase cost efficiency and increase access to clean energy.

In addition, the lender has consistently expanded its loan portfolio to include mini-grid developers, commercial and industrial energy efficiency providers and distributors of solar home systems. For example, it is well on its way to funding projects that would deliver over 10,000 new solar-powered electrical connections to households and businesses in various communities by the end of 2021. The bank has also developed a product for mini-grid developers under the World Bank / Rural Electrification Agency (REA) of Nigeria. This enables companies in the renewable energy sector to obtain loans of up to 70% of the project costs without collateral.

The financial institution has set up the FCMB Business Zone, an online community where SMEs can interact with each other and use the services of various business enablers and professionals to their advantage, including various e-learning programs. The bank helps SMEs leverage technology by giving them access to fintech solutions that can help their business grow.

These enormous advances, including by FCMB, have been recognized and praised by the market and other stakeholders. The bank won the prestigious “Best SME Bank in Africa” award at the Asian Banker Middle East and Africa Regional Awards in November 2020.

First City Monument Bank (FCMB) Limited, with over 200 branches across Nigeria, is a member of FCMB Group Plc. The group is one of the leading financial services institutions in Nigeria with subsidiaries that are market leaders in their respective segments. After successfully transforming into a private client and asset management group, FCMB expects to continue to distinguish itself through innovation and the provision of exceptional services.

More information about FCMB can be found at www.fcmb.com.