The World Bank Group’s International Finance Corporation (IFC) recently announced it will pay up to half of any losses that Union Bank of Nigeria may incur in lending the local-currency equivalent of USD 25 million to small and medium-sized enterprises (SMEs) in Nigeria. In particular, “the bank plans to offer more products and services to women-owned businesses, especially in Nigeria’s conflict-affected Northern and Delta regions.” This facility is part of IFC’s Small Loan Guarantee Program.
Union Bank was established in 1917 and operates 284 service centers across Nigeria as of 2020. It is a commercial bank serving the “retail and commercial needs of individuals, small and medium sized companies, and major corporations.” As of December 2019, the Union Bank reported total group assets of NGN 1.9 trillion (USD 5.1 billion), including NGN 1.7 trillion (USD 4.6 billion) held by the bank itself.
IFC offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2019, it reported total assets of USD 94.3 billion.
The World Bank Group is a multilateral organization whose goal is “to end extreme poverty and promote shared prosperity in a sustainable way.” As of 2020, it has 189 member nations. The group encompasses: (1) IFC; (2) the International Bank for Reconstruction and Development and the International Development Association, which make up the World Bank; (3) the Multilateral Investment Guarantee Agency; and (4) the International Centre for Settlement of Investment Disputes.
Sources and Additional Resources
Thisday article
https://www.thisdaylive.com/index.php/2020/02/28/ifc-union-bank-to-support-smes-women-led-businesses/
Union Bank of Nigeria homepage
https://www.unionbankng.com/
Union Bank of Nigeria 2019 Annual Report
https://www.unionbankng.com/wp-content/uploads/2020/03/Abridged-FY-2019-statement-.pdf
IFC homepage
https://www.ifc.org/e
World Bank Group homepage
https://www.worldbank.org/
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