Nigeria’s Union Bank has received funds worth $40 million from the International Finance Corporation (IFC). The credit facility will help the African economy to recover from a worst downturn triggered by the Covid-19 pandemic.
Eme Essien Lore, IFC’s country manager for Nigeria, told the media, keeping trade moving is essential to growth and job creation, especially during the challenging economic times we are living through today. We welcome Union Bank to IFC’s Global Trade Finance Program and value a partnership that will make a positive impact on Nigeria’s economy.”
The fund is part of the IFC’s Global Trade Finance Programme and will pave the way for Union Bank to diversify its operations across the world. In addition, it will also build new partnerships with hundreds of banks across the world taking part in the IFC programme.
It is reported that the development will assist Nigerian businesses to acquire loans and credit with low collateral requirements. The Union Bank said that the larger, macro-economic goal will help trade remain afloat in the African market, while boosting imports and bringing in foreign currencies to the continent.
The Nigerian economy is expected to slump 3 percent by the year end due to the global economic downturn. The forecast is produced by Fitch Ratings. However, Nigeria’s economy will recover next year with a growth of 1.3 percent if the global oil market returns to normalcy and Covid-19 vaccines are discovered. This will be crucial in deciding the survival of global economies in the long run.