EIB Global, Wema Bank Sign €50 Million Agreement to Support Youth, Gender-Focused Businesses

The international development arm of the European Investment Bank, EIB Global, and Nigeria’s Wema Bank have entered into a strategic partnership agreement with the signing of a €50 million SME-focused credit line for youth and women-focused businesses in Nigeria.

At least 50 per cent of the €50 million credit line allocated to Wema Bank will be allotted to youth-owned businesses, specifically contributing to private sector inclusive growth, job creation for youth and youth entrepreneurship in Nigeria, both institutions disclosed at the signing ceremony at Wema Bank’s Head Office in Lagos. The other 50 per cent is gender-focused, specifically targeting businesses owned, run, employing or primarily serving women.

Support for Climate-Related and Environmentally Sustainable Investments

Alongside the credit line, EIB will also provide technical assistance to Wema Bank through the Greening the Financial Sector (GFS) Programme to support the achievement of the loan’s objectives as well as developing climate-related and environmentally sustainable investments.

The GFS Programme will support the financial entrepreneurs in introducing best lending and risk management practices related to green financing, extending the funding to environmentally sustainable investments.

The fund will be allotted to Wema Bank customers with eligible businesses, as well as graduates from specific accelerator programmes such as “Investing in Young Businesses in Africa” (IYBA), a Team Europe Initiative aimed at supporting young businesses and entrepreneurs in Africa, with a focus on women and young people.

Youth Employment, Gender Equality and Women’s Empowerment

The Vice President of EIB, Ambroise Fayolle, described “this first financial agreement with Wema Bank” as an important contribution to strengthen youth employment, gender equality and women’s empowerment in Nigeria.

“We also support the entrepreneurs in the process of adopting the best practices in green financing. This is our responsibility as the EU climate bank and a key partner of Global Gateway,” Fayolle said.

Wema Bank’s Managing Director and CEO, Moruf Oseni, said as a bank whose legacy is rooted in empowerment, the agreement presents remarkable opportunities to scale Wema’s impact even further.

“In tandem with our deep-rooted commitment to inclusion, this facility is strategically focused on not just helping more businesses receive critical financial support but more precisely, leveraging the facility as a tool to combat prevalent gaps in gender equality while creating more avenues for Nigerian Youth to become economically active and (self)employed,” Oseni said.

“I take this opportunity to give firm reassurance that Wema Bank is, and will remain unflinchingly committed to ensuring that the right businesses get access to this, and more opportunities,” he said.

A Shared Commitment

The financial agreement is closely aligned with the priorities of the EU in Nigeria and with the EU’s Global Gateway, as well as Wema Bank’s proven commitment to empowering Nigerians on all levels, thus reflecting a shared commitment to youth employment, gender equality, access to finance for young enterprises and female entrepreneurs and environmental sustainability. It is also fully in line with the Nigeria’s Financial Inclusion Strategy by ensuring that women’s access to financial services increases by 15 per cent annually.

EIB has invested €2.3 billion in Nigeria since the start of its activities in the country in 1978, supporting impactful and transformative investments in crucial areas for the country such as sustainable urban transport, climate adaptation, innovation and digitalisation, agribusiness logistics and small and medium enterprises (SMEs) and Midcaps financing. This first phase of the facility signed with Wema Bank will bolster more investments in the Nigerian SME landscape.Also present at the signing ceremony were Deputy Managing Director of Wema Bank, Oluwole Ajimisinmi; Executive Director at WEMA Bank, Olukayode Bakare, and Ambassador of European Union from Delegation in Nigeria and ECOWAS, Gautier Mignot.