Firstbank secures $200m facility from Afreximbank to support client businesses

First Bank of Nigeria Limited, Nigeria’s premier financial services provider has sealed a strategic deal worth $200 million with Afreximbank at the ongoing yearly general meeting of Afreximbank in Nassau, The Bahamas.
The Acting Managing Director of First Bank of Nigeria Limited, Olusegun Alebiosu, closed the deal on behalf of the bank.

The facility will be accessible to FBN numerous clients in the manufacturing sector, oil&gas, energy, telecommunication and associating infrastructure projects among others.
The impactful financial response will immensely contribute to empowering many business clients of the bank and boost its operations.
Recall that Afreximbank  disbursed the sum of $150 million to the bank to finance facility to First Bank of Nigeria Limited under its Pandemic Trade Impact Mitigation Facility (PATIMFA) in 2022.
First bank in a statement explained that the money will be accessible to its customers that are involved in the manufacturing and importation of products and equipment required to combat the COVID-19 pandemic, as well as initiatives to rehabilitate hospitals and strengthen diagnostic and testing capacity.

“The loan will also be used for the financing of trade debt payments falling due to avert payment defaults in trade debt obligations. In addition, proceeds of the facility will help beneficiary businesses manage the impacts of the Ukraine crisis.
African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade.

Meanwhile, Access Holding Plc has unveiled plans to extend its business activities to the Caribbean as part of efforts to promote Africarribean trade and investment.

Group Chairman, Aigboje Aig-Imoukhuede, while speaking at a plenary session at the Afreximbank yearly general meeting, alongside Africarribean trade and investment forum in Nassau, Bahamas said there is need to replicate the successes recorded in the Nigerian financial services system in the Caribbean.
“We are looking at the opportunities that’s why access bank has been well represented in the various trade and investment conferences that Afreximbank has facilitated between Africa and the Caribbean.
“Before you make that step, you have to understand the environment which we are getting better and better in terms of understanding you have to build very, very strong relationships and partnerships with local people on ground, we been doing a lot in that regard.”

He bemoaned the challenges faced by Caribbean people in accessing financial services, stating that Access bank will bring the necessary digital services that would make it easier for the Caribbean to access financial products in more efficient manner.
Aig-Imoukhuede also emphasised the need to establish more. indigenous banks that understands the financial needs of the Caribbean people to deepen trade links between Africa and the Caribbean.
He noted that the Nigerian banking system has grown to.become one of the  powerful exports products in the country.
“If you think about the progress that has been made in the Nigerian banking sector, African banking over the last 30 to 40 years, which is a period that I was in banking, so it is very remarkable. Once, banking in Nigeria was very much like this.

“But as you all know, given that you are a Nigeria like me, things have changed a lot for many reasons. The use of technology, the growth in capacity, in the regulatory agencies, the overall infrastructure in the system, certainly the capitalisation of the Nigerian bank, and the skill level of Nigerian banker.
He commended the African Export-Import Bank for initiating discussions and building a bridge between the regions.
“I see a market similar to many in Africa, with biases and risks, but Access Bank is prepared to enter and serve this market effectively,” he added.