The United Bank for Africa (UBA) Plc, has secured a N5 billion loan facility from the Bank of Industry (BOI), to boost key sectors of the economy and support the growth of sustainable and viable businesses in the country, especially the micro, small, and medium enterprises (MSMEs) owned by women.
The facility disbursed through the Federal Government's MSME Fund, is designed to stimulate key sectors of the economy, while offering affordable financing to support businesses, with a primary focus on Green Energy, Education, Healthcare, and Women-Owned Enterprises, a statement from the bank indicated.
UBA's Group Managing Director/CEO, Oliver Alawuba, who spoke about the facility emphasised the bank's commitment to fostering economic growth by empowering MSMEs, which he described as the "livewire of any developing economy.
He said, "At UBA, we recognize the pivotal role MSMEs play in driving economic development, and how they make up a sizable portion of what drives our economic growth. It is in this vein that we have decided not to rest on our oars by facilitating initiatives dedicated to empowering businesses with the financial support they need to thrive."
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Alawuba said, "By offering loans at a competitive 9% interest rate with a three-year tenor, we are removing the traditional barriers that hinder SME growth in Nigeria and Africa. And by this, our message to business owners is simple: Don't let this once-in-a lifetime-opportunity elude you."
The facility provides a maximum loan amount of N5million per obligor, with a three-month moratorium on principal repayments.
This, according to the bank was to ensure businesses have ample time to stabilise before they begin to service the loans.
UBA's Group Head of Retail and Digital Banking, Shamsideen Fashola who highlighted the strategic importance of the targeted sectors to the nation's continued growth, noted that the initiative will strengthen financial inclusion and set the country and indeed the continent on the path of sustainable development.
"We are structuring this facility to align with our broader mission of financial inclusion and economic empowerment. For us at UBA, we will be targeting Green Energy, Education, Healthcare, and Women-Owned Enterprises, which are critical to Nigeria's sustainable development," he noted.
"This facility is structured to ensure that businesses in these sectors can access affordable funding, expand their operations, and contribute meaningfully to the economy. We are excited to partner with BOI to make this a reality," he added.
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Group Head, Marketing and Corporate Communications, Alero Ladipo, urged business owners, especially women to take advantage of the initiative.
"What sets this program apart is its accessibility and affordability. We have worked closely with stakeholders to ensure the terms are business-friendly because we understand the challenges entrepreneurs face. I urge eligible businesses to visit any UBA branch or the bank's official website to begin their application process right away," Ladipo stated.
