The United States International Development Finance Corporation (DFC) and Access Bank have signed a commitment letter for $280 million to help address the financing gap for small- and medium-sized enterprises (SMEs).

The US Embassy in a statement issued Monday said the commitment letter was signed by DFC CEO, Scott Nathan and Access Bank Managing Director, Roosevelt Ogbonna in Lagos Monday.

Nathan said the DFC financing for Access Bank would provide needed liquidity given the global economic downturn caused by the COVID-19 pandemic.

He added that the intervention was expected to support at least 4,000 new SME loans in Nigeria.

Nathan noted that 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 will provide more flexibility to borrowers.

He stated: “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.

“DFC’s investment in Access Bank demonstrates US 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, the US Ambassador to Nigeria, Mary Leonard said she looked forward to discussing with the public and private sectors how DFC funding could 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.