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Trade finance and support for SMEs: AfDB to provide $230 million to Access Bank Nigeria

06/03/2025
Source : ORISHAS FINANCE
Categories: Economy/Forex Sectors

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La Banque africaine de développement (BAD) prévoit a $230 million funding in favor of Access Bank Nigeria. This financing aims to stimulate the activities of small financement du commerce et à apporter un soutien aux and medium-sized enterprises (SMEs) in the country

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The ADB financing project is , serif"> divided into two main shutters. First of all, it is a $170 million commercial financing line of credit with a term of 3.5 years. This first component is cash destiné à fournir des in foreign currency for businesses. They need it to settle their trade finance obligations and maintain access to international financial markets and global supply chains. The second part is a $60 million transaction guarantee for a period of three years. Il permettra to Access Bank to issue letters of credit and other financial instruments with 100% risk coverage provided by the ADB.

According to the project summary note, the initiative is in line with Nigeria's 2020-2024 country strategy paper and the AfDB's 10-year strategy (2024-2033), which prioritizes economic growth through business development.

The funding will be implemented through two separate agreements governing the disbursement of funds and the terms of repayment.

This facility should help address the foreign currency liquidity problems faced by Nigerian businesses, in particular SMEs that rely on imports of raw materials, equipment and intermediate goods.

Le ADB's trade finance program represents a major intervention to meet the constraints of liquidité en devises et stimuler l' activité économique au Nigeria.

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