Netherlands-based cooperative Oikocredit recently invested USD 10 million in debt in First City Monument Bank (FCMB) Limited, which has operations in Nigeria and the UK. The investment will finance loans for small and medium-sized enterprises (SMEs) in Nigeria, with a focus on agricultural businesses, especially in low-income areas severely impacted by the COVID-19 pandemic. The goals of the investment are to promote economic empowerment and accelerate job creation.
Ufuoma Elizabeth Eghwerehe, Oikocredit’s Manager for Nigeria, said, “The Oikocredit loan to FCMB Limited will play an important role in providing credit to unbanked small and medium businesses during these challenging COVID-19 times. It will also enhance Oikocredit’s lending in Africa and promote its strategic objective of development impact by providing the much needed loans in this time of crisis.”
Founded in Nigeria in 1982, FCMB Limited has operated as a retail and commercial banking unit of FCMB Group Plc since 2012. As of 2021, FCMB Limited has 205 branches across Nigeria and one branch in the UK, serving approximately 4.5 million customers. In 2019, FCMB Limited reported total assets of NGN 1.5 trillion (USD 3.6 billion) and gross loans of NGN 799 billion (USD 1.94 billion).
As of 2021, FCMB Group, which is listed on the Nigerian Stock Exchange, provides approximately 7.1 million customers services such as retail banking, investment banking, asset management, pension management and microfinance. FCMB Limited’s UK-based holding offers services including foreign exchange, corporate banking and banking services for high net worth individuals.
Founded in 1975, Oikocredit invests in microfinance, fair trade, agriculture and renewable energy. As of September 2020, it reports total outstanding capital of EUR 856 million (USD 1.05 billion), including investments in approximately 700 organizations.
By Sophie Fiala, Research Associate
Sources and Additional Resources
Oikocredit press release
https://www.oikocredit.coop/k/en/n2613/news/view/342629/9049/oikocredit-invests-usd-10-million-in-fcmb-limited-to-support-nigerian-smes-and-agricultural-enterprises.html
FCMB Limited homepage
https://www.fcmb.com/
FCMB Group homepage
http://fcmbgroup.com/
FCMB Group 2019 annual report
http://www.fcmbgroupplc.com/images/press/FCMB%20Group%20Plc_FY19_Annual%20Report%20&%20Accounts[34199].pdf
Oikocredit homepage
https://www.oikocredit.coop/
Previous MicroCapital article on Oikocredit
https://www.microcapital.org/microcapital-brief-oikocredit-opens-1-8m-credit-line-for-cavica-cashew-cooperative-in-cote-divoire/
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