The U.S. International Development Finance Corporation (DFC) has signed a commitment letter for $280 million in financing for Access Bank Plc in Nigeria.

The letter was signed on Monday by the CEO of DFC, Scott Nathan, alongside Access Bank Managing Director, Roosevelt Ogbonna.

According to Nathan, the loan will help address the financing gap for small- and medium-sized enterprises (SMEs) and advance financial inclusion in Nigeria, including through the bank’s commitment to supporting women-owned and -led businesses.

He said: “DFC’s investment in Access Bank demonstrates U.S. support for private sector-led development in Nigeria and throughout West Africa.

“The $280 million loan from DFC will boost financial inclusion in Nigeria and empower women, bolstering the country’s economic growth.”

Also speaking, the U.S. Ambassador, Mary Beth Leonard, who welcomed Nathan to Nigeria, said: “We look forward to discussing with the public and private sectors how DFC funding can be leveraged to unleash the full economic potential of Nigeria through support to the country’s small and medium-sized businesses, financial sector, and climate change-focused enterprises.”

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On his part, Ogbonna stated: “Access Bank is extremely pleased to announce this strategic partnership with DFC to support the multitude of businesses across Nigeria who stand to benefit from greater access to finance, especially in an environment that is in need of stronger economic diversification.

“We look forward to utilizing the partnership with DFC in driving further economic expansion and inclusion in Nigeria, with a strong focus on non-oil sectors and women businesses.”

The EMEA Head of Emerging Markets Corporate Bank, Rizwan Shaikh Citi, said: “We are delighted to have collaborated with Access Bank and DFC on this significant transaction, which will significantly boost SME corporate activity in Nigeria.

“This is yet another milestone stride for Citi as it executes a focused local-economy development strategy based on solid partnerships with key clients and development agencies.”

DFC financing for Access Bank is expected to provide needed liquidity given the global economic downturn caused by the COVID-19 pandemic.

The loan is expected to support at least 4,000 new SME loans in Nigeria.

In addition, the loan proceeds would be on-lent across more than a dozen sectors in the Nigerian economy, with specific focus on women-owned SMEs, and on loans with longer tenors, which would provide more flexibility to borrowers.

The Star