| MSME - Funding, Lending & Credit |     5046 VIEWS  |
| MSME - Funding, Lending & Credit | |
| 5046 VIEWS | |
 |
The African Development Bank has approved a US$50 million line of credit
to Nigeria’s Fidelity Bank Plc to support small and medium sized, and
women-owned enterprises in selected transformative sectors, including close to
a hundred SMEs in manufacturing, health and education.
Approved by the Bank’s Board on 10 October 2018, the facility is fully
dedicated to financing micro, small and medium sized enterprises (MSMEs), with
a minimum of 30 percent going to women-owned enterprises. The loan will enhance
Fidelity Bank’s liquidity and help meet the demand for medium-term funding to
players in the target sectors, contributing to improved quality of lives, job
and wealth creation and tax-revenue generation.
The facility complements the Government of Nigeria’s long-term
development strategy, as espoused in its Vision 20:2020 agenda. Aligned with
Nigeria’s Economic Recovery and Growth Plan 2017-2020 (ERPG), the funding will
ultimately boost enterprise competitiveness and expand Nigeria’s economic base.
The ERPG seeks to stimulate Nigeria’s economic growth, catalyse macroeconomic
stability, foster diversification of the economy, and enhance social inclusion
as well as governance.
SMEs account for 30 percent of Fidelity Bank’s loan portfolio. The
selection of the tier 2 Nigerian bank for this seven-year credit facility (with
a grace period of two years) is based on its strong niche presence in the SME
and mid-sized corporates space. It is also in recognition of the bank’s credit
management and strong track record with the African Development Bank. The
Nigerian lender has previously received US$18 million and US$75 million lines
of credit from the development finance institution in 2001 and 2013, respectively.
“Fidelity Bank is a niche player, focused on the SME space and this
US$50 million credit line will contribute to strengthening its presence in its
key market segments,” said Ebrima Faal, Senior Director, Nigeria Country Office
at the African Development Bank. “The Nigerian financial institution also
continues to meet its ongoing credit obligations under the terms of previous
support received from the African Development Bank.”
The line of credit to the Nigerian financial institution is consistent
with the Bank’s Ten-Year Strategy (2013–2022). It also aligns with two of its
High 5 priorities – Industrialize Africa and Improve the quality of life for
the people of Africa.
Founded in 1987, Fidelity Bank Plc has grown from its marginal position
into a stable banking institution. Currently the 10th largest commercial bank
in Nigeria by asset size, it was listed on the Nigerian Stock Exchange in May
2005. It has a broad client base of about four million customers nationwide,
served from a network of over 240 branches and business offices, supported by
alternative service delivery channels like ATMs, mobile and electronic banking,
and agency banking channels.
Following its renewed digital banking and retail drive, Fidelity Bank
was ranked 4th best bank in Nigeria in the retail market segment in the KPMG
Banking Industry Customer Satisfaction Survey (BICSS) in 2017.
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