Despite the huge contribution of the micro, small and medium-scale enterprises, (MSMEs) to the Nigerian economy, the growth of the sector has been impeded over the years owed to several challenges, one of which is lack of access to funds. And this is because majority of commercial banks lightly support small business that do not have the required collateral.
According to an IMF review of the Nigerian economy, promoting gender equality could be an economic game-changer boosting growth and productivity and ensuring greater economic stability. It is estimated that Nigeria’s gross domestic product (GDP) may possibly grow by 23 per cent (or 229 billion US dollar) by 2025 through contributions of women in the country. And such huge contribution to the nation’s economy would be realized if the right environment is created for women to participate equally with their male counterparts in the formal sector of the Nigerian economy.
And this prompted the need to give opportunities to women in business especially who are having access to finance their business is a major challenge.
And to actualize the vision to finance small scale businesses in Nigeria, SunTrust Bank has availed fifty-million-naira (N50,000,000) Murabaha financing line to New Extension Allround Trust Limited (NEAT).
The SunTrust Bank Nigeria Non-Interest Banking Window is being utilized in facilitating this transaction which is novel. This will allow NEAT to reach over 1,000 more unbanked customers and provide them with the resources that are needed to move their businesses forward. Marble Capital Limited provided Financial Advisory Services to NEAT for this transaction.
This transformational partnership will create greater scale to drive growth, improve profitability and enhance long-term value for all our constituents including our stakeholders, our customers, our associates and our communities. The transaction brings together the complementary strengths of SunTrust Bank as a leading financial provider in the non-interest banking space and NEAT as a leading MicroCredit provider in Nigeria.
In this alignment, we are poised to bring affordable small business financing, deepen financial inclusion and improve the impact of non-interest banking in Nigeria. This is the first phase of the partnership. When the other phases are fully implemented, it will stimulate over 10,000 small scale businesses and will improve the socio-economic activities in the country, provide a sizeable number of direct and indirect employments, and raise thousands of families from the poverty level.
SunTrust Bank is a financial services provider committed to meeting the needs of communities through uncompromising commitments to the principles of honesty and integrity.
And New Extension All round Trust Limited is a leading microcredit organization in Northern Nigeria that is involved in financial inclusion for the vulnerable population (Mostly women in petty trading).
Sign: Management (NEAT)