Access Bank Nigeria Plc has announced that it is committing 50 billion Naira to support Nigerian businesses and communities.
The brief statement which was published on the LinkedIn page of Access bank says in part, “Now more than ever, we remain committed to our purpose of impacting of lives positively. In the light of the recent occurrences, we will be supporting Nigerian businesses with 50 Billion Naira interest-free loans and grants.”
Why is this important?
- The announcement follows days of rage that trailed violent disruption of #EndSARS protests amidst the COVID-19 pandemic, and a dire economic outlook that has seen inflation rise above 13%.
- Nigerian businesses suffer from the perception that lending is highly risky, as a result, interest rates are frequently double-digits, and banks, as well as businesses, loathe to give or receive credit under such terms given Nigeria’seconomic landscape.
- Recent moves by the CBN earlier in June raised fears of a reduction in the willingness of banks to extend credit. Access Bank’s recent non-interest facility is a welcome surprise.
- The trickle-down effect of a properly administered non-interest facility will likely be a net positive.
This article was first published by The BB Buzz |
Featured image credit – Nigeria Abroad