By Nse Anthony-Uko
ABUJA (Sundiata Post) – The African Development Bank (AfDB) and Fortis Microfinance Bank Plc (Fortis) on Tuesday signed an agreement for a N1 billion facility to be used for onward lending to small and medium enterprises (SMEs) in Nigeria.
This partnership with Fortis is expected to boost Nigeria’s private sector development through financing of projects that are strategically aligned to the country’s development agenda.
Fortis is a microfinance institution which was founded in 2007. Since inception it has grown impressively to become one of the largest MFI’s in the country. It provides microfinance banking services to support entrepreneurship and the empowerment of the large unbanked population with a focus on (mostly female) micro clients and small enterprises.
In his opening remarks at the signing ceremony in Abuja, the Country Director of the AfDB in Nigeria, Dr Ousmane Dore underscored the importance of strengthening micro finance initiatives, adding that “unless those at the bottom of the pyramid have access to finance, poverty will remain a major development issue.’’ He re-affirmed the Bank’s commitment to promote inclusive, private sector-led growth and employment creation in Nigeria and across the continent.
Speaking during the signing session, Fortis Managing Director and CEO, Tiko Okoye, remarked that “The collaboration with the African Development Bank has added a significant boost to the realisation of our dreams of empowering more Nigerian households through the SMEs. SME across all climes is the engine of most economies, Nigeria and Africa inclusive. A more formidable SME sector will lead to a stronger Nigerian economy. Fortis Microfinance Bank Plc will ensure the full implementation of the intentions of this scheme in order to achieve the set objectives of AFDB which include providing access to finance, reduction of poverty and developing the Nigerian economy.”
This partnership falls under the AfDB’s Africa SME Programme, which provides medium to long- term lines of credit to small local financial institutions, enabling these institutions to on-lend to more SMEs at longer tenures and affordable terms. With support from the Fund for Africa Private Sector Assistance, technical assistance and capacity building programs are also offered to these institutions to build their SME portfolios and support SME clients.