First City Monument Bank (FCMB) of Nigeria has begun offering loans of NGN 500,000 (USD 600) to NGN 3 million (USD 3,600) with terms of one year to four years for businesses to finance purchases of equipment and machinery. FCMB reports that it also may grant customers – in certain circumstances – options such as temporary repayment moratoriums and increased borrowing limits. Although this product is described as targeting small and medium-sized enterprises (SMEs), the minimum loan size is small enough to be workable for some microenterprises.
Founded in Nigeria in 1982, FCMB Limited has operated as a retail and commercial banking unit of FCMB Group Plc since 2012. The bank provides services such as savings, loans, payment cards, insurance, letters of credit and investments. Its loan offerings include products designed for schools and women-owned businesses as well as access to government-subsidized programs.
FCMB Limited serves approximately 8 million customers online and via 205 branches across Nigeria, plus one in the UK. The institution reports total assets of NGN 2 trillion (USD 2.63 billion), deposits of NGN 2 trillion (USD 2.6 billion) and gross loans of NGN 1.3 trillion (USD 1.6 billion) as of 2023. Other members of the FCMB Group offer services such as microfinance, asset management and securities trading.
By Rohit Dayanand, Research Associate
Sources and Additional Resources
FCMB description of SME Asset Finance Facility
https://www.fcmb.com/sme-asset-finance-facility
FCMB homepage
https://www.fcmb.com
FCMB Group investor report, first quarter 2023
https://fcmbgroup.gcs-web.com/static-files/bd00a0d5-c9c7-4627-9222-2183acdc210a
FCMB Group corporate profile
https://fcmbgroup.gcs-web.com/static-files/e3aa6288-9ea0-48fb-b0cd-b8e9f45ad37a
Previous MicroCapital brief on FCMB
https://www.microcapital.org/microcapital-brief-oikocredit-lends-10m-to-fcmb-to-boost-lending-to-smes-agricultural-enterprises-in-nigeria/
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