International Finance Corporation (IFC) , a member of the World Bank Group, is to provide N800million (about $5 million), to AB Microfinance Bank. In a statement IFC said the loan would increase access to finance for micro, small and medium enterprises and promote financial inclusion, job creation and grow the economy.
The statement said IFC provided an investment of a similar size in 2008, adding that the current investment would help AB Microfinance Bank build on its demonstrated success in offering financial services to new market segments and entrepreneurs serving the base of the economic pyramid. These services will help people with low incomes to engage in economic activities to sustain livelihoods and access basic goods and services, it added.
The bank’s Managing Director, Mr Mattias Grammling said, “improving access to financial services for MSMEs would hasten growth in the informal sector, adding; “Our partnership with IFC will help soften bottle-necks on loan acquisitions and enable us provide growth opportunities for MSMEs and lower income clients to foster job creation and economic growth.”
IFC Country Manager for Nigeria Solomon Adegbie-Quaynor said, “supporting the bank was consistent with IFC’s core strategy to improve financial inclusion and contribute to economic growth, adding; “IFC’s investment will provide term funding in naira to make local currency more readily available from AB Microfinance to entrepreneurs. This loan will increase access to finance and empower entrepreneurs and micro-businesses, whose credit needs are today primarily met outside the formal banking sector.”