Lagos, Nigeria – First City Monument Bank (FCMB) has taken a significant step in promoting the growth and expansion of Small and Medium Scale Enterprises (SMEs) in Nigeria with the launch of its SME Asset Finance Facility. This facility allows businesses to quickly access funds ranging from N5 million to N100 million, specifically earmarked for the purchase of equipment essential to their growth. With over 25,800 SMEs having already accessed this facility, FCMB has become a vital partner in providing the necessary financial support for entrepreneurs to enhance their operations.
Recognizing the challenges faced by SMEs, particularly in the start-up stage with inadequate collateral coverage, FCMB has been a key player in supporting these businesses. The bank has provided approximately N45.9 billion in loan guarantee support to such SMEs. Moreover, FCMB has disbursed a total of over N637.08 billion in loans, underscoring its significant role in fueling entrepreneurial growth in Nigeria.
The Asset Finance Facility is designed to provide SMEs with a convenient repayment option spanning four years. This makes it an attractive solution not only for the early-phase businesses, those less than five years old, but also for the growing SMEs seeking to acquire new equipment or replace depreciating assets. Mr. George Ogbonnaya, Group Head of Business Banking at FCMB, emphasized the challenges faced by SMEs in securing funding for equipment acquisition, stressing that FCMB is dedicated to addressing these obstacles and supporting SMEs in their journey towards success.
“SMEs in Nigeria have what it takes to be more productive and contribute more to economic growth,” stated Mr. Ogbonnaya. “However, they face a major challenge in raising funds to acquire modern equipment and other assets. FCMB understands these challenges and is committed to providing them with the financial support they need to grow and succeed.”
The FCMB Asset Finance facility has garnered an impressive response from SMEs, thanks to its affordably structured rate options, which enable businesses to acquire crucial assets. The success of this initiative recently earned FCMB the esteemed “Best Bank with the Highest Impact on SMEs in Nigeria” award from the Development Bank of Nigeria (DBN), for the second consecutive year. This recognition serves as a testament to FCMB’s unwavering efforts in offering small and medium scale the necessary financing and support required for their growth and success.
In addition to the DBN award, FCMB received nine national and international awards and recognitions in 2021, further solidifying its position as a leading financial institution. Notable among these accolades were the “Best SME Bank in Africa” and “Best SME Bank in Nigeria” awards at the Asian Banker Middle East and Africa Regional Awards, marking a second consecutive win in both categories.
As a member of the FCMB Group Plc, First City Monument Bank remains steadfast in its commitment to fostering inclusive and sustainable growth within its communities. The bank is dedicated to building a supportive ecosystem rooted in Africa, one that connects people, capital, and markets.
Entrepreneurs can be confident in FCMB’s ongoing commitment to empowering SMEs, as the bank continues to provide the necessary financial resources for their growth. With FCMB’s support, small and medium scale are poised to thrive, drive economic growth, and contribute significantly to the development of Nigeria.
As small and medium scale enterprises harness the benefits of FCMB’s Asset Finance Facility and other initiatives, they can rely on the bank’s continued dedication to providing the financial support they need to flourish and succeed in their respective industries. FCMB’s unwavering commitment to empowering small and medium scale enterprises demonstrates its vision of a vibrant and prosperous Nigerian economy, supported by a thriving SME sector.