In the first half of 2024, FCMB disbursed N180 billion in loans to over 800,000 MSMEs across various industries. This financial support has helped businesses improve operations, adopt new technologies, and become more resilient.
Sustainable banking is a key driver of economic growth in developing markets like Nigeria. By integrating environmental, social, and governance (ESG) principles into financial decisions, banks can ensure their activities positively impact society.
In Nigeria, with over 37 million micro, small, and medium-sized enterprises (MSMEs) contributing nearly half of the country's GDP, access to finance must go hand in hand with supporting sustainable business practices.
First City Monument Bank (FCMB) is at the forefront of this approach, promoting inclusive growth and sustainability. The bank's efforts were recognised at the Development Bank of Nigeria (DBN) 2024 Annual Lecture Series and Awards, where it won the "Best Bank with the Highest Impact on MSMEs Accessing Credit for the First Time in Nigeria" and the "Highest Disbursement to Sustainability Projects." These awards highlight FCMB's commitment to financial inclusion and responsible lending.
As a key player in Nigeria's financial sector, FCMB views small businesses as essential to economic development. The bank has developed innovative financial solutions to help MSMEs access the capital they need to grow.
According to Yemisi Edun, Managing Director of FCMB, MSMEs are crucial for economic growth: "We are committed to providing the financial and non-financial support MSMEs need to reach their full potential. Our work reflects our promise of shared prosperity through sustainable and inclusive growth, backed by a strong ecosystem that connects people, capital, and markets across Africa."
The Benefits of Sustainable and Impactful Banking
Sustainable banking is not only about profit but also about creating long-term value for society. This approach helps close the financing gap in Nigeria for underserved sectors like agriculture, renewable energy, and small-scale manufacturing. By aligning with ESG standards, FCMB supports long-term economic stability, environmental protection, and social equality.
In the first half of 2024, FCMB disbursed N180 billion in loans to over 800,000 MSMEs across various industries. This financial support has helped businesses improve operations, adopt new technologies, and become more resilient. FCMB also encourages MSMEs to adopt environmentally friendly practices, contributing to Nigeria's sustainability efforts.
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Commitment to Innovation and Financial Inclusion
Innovation is central to FCMB's strategy for sustained and broad-based growth. The bank has invested in digital platforms, such as its Quick-Loans solution, which allows entrepreneurs to access loans quickly and easily. These digital channels remove the traditional barriers small businesses face in securing financing and are aligned with global trends that show how digital financial services can expand access to credit and reduce poverty.
In 2023, FCMB secured over $280 million in funding from Development Finance Institutions (DFIs), further enhancing its ability to support MSMEs, especially women-led businesses and those in renewable energy. This funding is part of the bank's commitment to sustainable development, ensuring resources are focused on projects with the most significant social and environmental impact.
A Roadmap for the Future
FCMB's focus on sustainability and impactful lending sets a new standard for Nigerian banking. The bank's emphasis on financial inclusion and innovation has made it a model for other financial institutions in the country. By building an ecosystem that connects people, capital, and markets, FCMB is contributing to a more inclusive, equitable, and sustainable economic future for Nigeria.
Sustainability in banking is not just a passing trend but a necessary evolution. FCMB's leadership demonstrates that banks can be both profitable and purposeful, paving the way for a new era of banking that prioritises growth for all.
