Stanbic IBTC Bank Explores Financing Options for SMEs

Stanbic IBTC Bank said it would explore multiple options to ensure access to financing for the nation’s Small and Medium enterprises (SMEs) and the development of renewable energy.

Yinka Sanni, chief executive officer of the bank, who gave the assurance, noted that the decision was in recognition of the strategic role of small businesses in the growth of the economy and the emerging potentials in energy efficient projects.

Already, the financial institution has secured a $100-million line of credit from the African Development Bank (AfDB) for on-lending to small and medium-size enterprises operating in various sectors of the Nigerian economy.

Sanni pointed out that part of the fund will also be applied to the financing of renewable energy and energy efficiency projects in Nigeria, in line with the requirements of the Clean Technology Fund (CTF).

According to him, as the first Nigerian bank to receive CTF’s approval, the financial institution will fund SME projects in Nigeria with $75 million, while $25 million will be used for the financing of renewable energy and energy efficiency projects.

“We will continue to explore various channels of credit to empower small and medium-sized businesses. We recognise that the SME and energy sectors form an integral part of the Nigerian economy as a whole. As a result, we will remain at the forefront to empower our clients and help them achieve their business goals.

“We appreciate the trust bestowed upon us by AfDB in granting us this facility, which is devoted to the funding of SMEs, energy and energy efficiency projects in Nigeria,” he said.

Sanni assured that the bank will continue to partner with reputable institutions to create avenues for growth and development of the Nigerian economy.

The CTF facility was approved by AfDB’s board in Tunis, emphasizing that SME sector represents a strategic pillar for Nigeria’s quest to modernize and improve its economy, while it also recognized the financial inclusion drive as part of CBN’s drive to diversify the nation’s economy.