The World Bank Group's International Finance Corporation (IFC)  announced on Thursday, February 27, 2020,  a $ 25 million investment for Nigeria's Union Bank.

The financing, in local currency, will be done through a  risk-sharing mechanism (50% of the risk of the loans) and will allow the bank to extend its loans to small and medium-sized enterprises (SMEs) in the country.

"The IFC's risk-sharing mechanism will help Union Bank focus more on Underserved areas of Nigeria, positioning it as one of the leading banks providing personalized services to SMEs," said Eme Essien Lore, IFC Country Manager in Nigeria.

The IFC's investment also includes support from the Women Entrepreneurs Finance Initiative (We-Fi), in the form of performance-based incentives to increase lending to women-owned SMEs.

With IFC support, Union Bank plans to offer more products and services to women-owned businesses, particularly in Nigeria's northern and delta regions, where entrepreneurs face particularly difficulties in accessing finance, and more than half of the population is excluded from the financial system. 

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