Bennett Oghifo
Wema Bank has entered into a €50 million (N78.5 billion) financing agreement with the European Investment Bank’s development arm, EIB Global, to expand access to credit for small and medium-sized enterprises (SMEs), with a focus on women- and youth-owned businesses.
The agreement was signed recently at the bank’s headquarters in Lagos, marking the first transaction between EIB Global and Wema Bank, according to a statement yesterday.
According to both institutions, the facility was aimed at supporting eligible businesses across Nigeria, with at least 50 per cent of the loans earmarked for youth-owned enterprises to promote entrepreneurship, job creation and inclusive economic growth.
The remaining 50 per cent would target businesses owned, managed, employing or primarily serving women.
The initiative is backed by the European Union’s Global Gateway programme and is aligned with Nigeria’s Financial Inclusion Strategy.
In addition to the credit line, EIB Global said it would provide technical assistance to Wema Bank through its Greening the Financial Sector (GFS) Programme.
The support was intended to strengthen climate-related lending practices and promote environmentally sustainable investments.
Beneficiaries of the fund, according to the statement, would include Wema Bank customers with qualifying businesses, as well as graduates of selected accelerator programmes, including the Investing in Young Businesses in Africa (IYBA) initiative, a Team Europe programme focused on supporting young entrepreneurs, particularly women and youths.
Speaking at the signing ceremony, EIB Vice President, Ambroise Fayolle, was quoted to have described the agreement as a step towards promoting youth employment and gender inclusion in Nigeria.
“This first financial agreement with Wema Bank is an important contribution to strengthen youth employment, gender equality and women’s empowerment in Nigeria.
“We also support entrepreneurs in adopting best practices in green financing. This is our responsibility as the EU climate bank and a key partner of Global Gateway,” he said.
Managing Director and Chief Executive Officer of Wema Bank, Moruf Oseni, said the facility would enable the bank to deepen its support for underserved segments of the economy.
“As a bank whose legacy is rooted in empowerment, this agreement presents remarkable opportunities to scale our impact even further.
“In tandem with our commitment to inclusion, this facility is strategically focused not only on helping more businesses access critical financial support, but also on addressing gender gaps and creating opportunities for Nigerian youths to become economically active and self-employed,” Oseni said.
He added that the bank would ensure that qualified businesses benefit from the opportunity.
The two institutions said the partnership reflects their shared commitment to youth employment, gender equality, access to finance for women entrepreneurs and young enterprises, as well as environmental sustainability.
EIB noted that it has invested about €2.3 billion in Nigeria since commencing operations in the country in 1978, supporting projects in sectors including transport, climate adaptation, innovation, digitalisation, agribusiness logistics and SME financing.
