In a move to strengthen Nigeria’s economic landscape, the Dutch Entrepreneurial Development Bank (FMO) and First City Monument Bank (FCMB) have signed a transformative $25 million NASIRA guarantee agreement. This initiative, funded by the European Commission, represents a significant step towards supporting agricultural ventures, youth initiatives, and women-owned SMEs in Nigeria, without the traditional requirement of collateral.
The NASIRA program, known for its innovative approach, enables local banks to provide financial assistance to entrepreneurs typically seen as too risky for conventional loans. This agreement underscores a strategic effort to stimulate job creation amidst Nigeria’s economic challenges, including high unemployment and currency depreciation.
In addition to the $25 million NASIRA guarantee, FMO will support FCMB with a substantial syndicated loan totaling $60 million. This includes $20 million from FMO, $30 million from the European Financing Platform on behalf of BIO, DEG, EIB, FINNFUND, Proparco, and SWEDFUND, and $10 million from FMO Investment Management. The loan aims to expand FCMB’s existing portfolio for SMEs.
The signing ceremony, held during the 9th Nigeria EU Business Forum, received strong endorsements from EU Ambassador to Nigeria and ECOWAS, Ms. Samuela ISOPI. She highlighted the EU’s commitment to leveraging private sector investments through instruments like the European Fund for Sustainable Development (EFSD+).
“We are pleased to see EU investment instruments, such as EFSD+ guarantees, making a catalytic impact in Nigeria by leveraging private sector investments for economic diversification, job creation, particularly for youth and women,” Ms. ISOPI remarked.
Furthermore, the agreement includes a technical assistance (TA) component aimed at supporting early-stage agri-tech ventures in Nigeria. Through this initiative, FMO and FCMB will identify and nurture 15 promising agri-tech startups, addressing critical challenges in the agricultural sector and contributing to SDG2: zero hunger and food security.
