Dutch Bank & EU sign $25M Nasira Guarantee Agreement with FCMB

With an intent to boost funding for excluded entrepreneurs in Nigeria, Dutch Entrepreneurial Development Bank FMO has collaborated with European Union (EU) and together they signed a 25-million-dollar Nasira Guarantee Agreement with First City Monument Bank (FCMB).

This particular agreement has been introduced by FMO and European Union in an alliance in the year 2020. It is an automated loan portfolio guarantee programme. Basically, it takes up the credit risks’ major part for entrepreneurs. This has been revealed during the signing ceremony by Deputy Director General, Directorate of International Partnerships (INTPA), European Commission, Myriam Ferran on the 9th Nigeria EU Business Forum’s sidelines.

Myriam stated, “We are very happy to see that the EU investment instruments, such as the European Fund for Sustainable Development (EFSD+) guarantees, have come to Nigeria. It plays a catalytic role in leveraging private sector investments for the benefit of the real sector, economic diversification and employment creation, especially for youth and women.” Ferran said, funded by the European Commission, NASIRA is one of FMO’s most innovative programs, encouraging local banks to extend their funding to small entrepreneurs without collateral.”

Adding to the statement, she said, “Often, the FMO guarantee that effectively replaces the collateral is not fully utilised, demonstrating that these entrepreneurs, primarily women and young people, are not riskier than others. Job creation in Nigeria, home to 220 million people and the largest population in Africa, is critical. The country faces severe economic challenges, including high unemployment. Providing small loans to typically high-risk groups will enable them to start and expand their businesses, offering a means of income for themselves and their families.”