The African Development Bank (AfDB) has announced a $230 million trade finance package for Access Bank Plc to support small and medium-sized enterprises (SMEs) and address foreign exchange liquidity challenges in Nigeria.
A Project Summary Note obtained by The PUNCH on Wednesday outlined the facility's structure, which includes:
$170 million Trade Finance Line of Credit (3.5-year tenure)
$60 million Transaction Guarantee (3-year tenure)
The funding aims to provide critical forex liquidity to Nigerian businesses, enabling them to settle trade obligations, access global supply chains, and procure essential inputs such as raw materials and equipment.
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The Transaction Guarantee will allow Access Bank to issue trade finance instruments, with AfDB covering up to 100% of non-payment risks, ensuring smoother international trade transactions.
This initiative aligns with Nigeria's 2020-2024 Country Strategy Paper and AfDB's Ten-Year Strategy (2024-2033), promoting economic growth through SME development. It also supports the bank's High 5s agenda, focusing on industrialization, regional trade integration, and agricultural development.
The Central Bank of Nigeria's approval is required before disbursement, and the facility will prioritize women-led enterprises, helping stabilize supply chains for agriculture, food products, and capital goods, especially amid dollar shortages in Nigeria.
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