The African Development Bank is set to roll out a $230 million trade finance package for Access Bank Plc, aimed at enhancing trade finance activities and improving foreign exchange liquidity for small and medium-sized enterprises in Nigeria.
According to a Project Summary Note, the financing package comprises two key components: a $170 million Trade Finance Line of Credit with a 3.5-year tenure to provide much-needed FX liquidity for SMEs and corporate clients engaged in trade.
A $60 million Transaction Guarantee with a three-year tenure, allowing Access Bank to act as an Issuing Bank while AfDB offers up to 100% risk coverage to Confirming Banks for trade transactions.
The initiative is expected to help Nigerian businesses bridge trade finance gaps, settle international obligations, and maintain access to global financial markets. Given that many SMEs rely on imports for raw materials, equipment, and intermediate goods, the provision of FX liquidity is crucial for sustaining operations.
The project aligns with Nigeria’s 2020-2024 Country Strategy Paper and AfDB’s Ten-Year Strategy 2024-2033, which emphasize economic revitalization through enterprise development.
It also supports AfDB’s High 5s Agenda, particularly the goals of ‘Feed Africa,’ ‘Integrate Africa,’ and ‘Industrialize Africa’ by fostering regional trade and strengthening local industries.
The trade finance facility will be governed by two separate legal agreements outlining fund disbursement, repayment terms, and compliance measures. Disbursement is subject to approval from the Central Bank of Nigeria.
The Transaction Guarantee component will be implemented through an Issuing Bank Agreement between AfDB and Access Bank, with specific eligibility criteria for trade transactions. The Private Sector and Industrial Development Finance department at AfDB will oversee the approval process for individual trade finance guarantees.
The $230 million package is projected to deliver significant economic and social benefits, including: easing trade finance constraints** for Nigeria’s private sector.
Supporting women-led businesses**, with part of the facility allocated to women-owned SMEs engaged in trade.
Facilitating access to essential goods**, such as agricultural inputs, food products, and capital goods, especially amid ongoing FX shortages.
As one of Nigeria’s leading financial institutions, Access Bank Plc plays a key role in trade finance, with a presence in 15 African countries, as well as France, the United Kingdom, and the United Arab Emirates.
The bank also operates representative offices in China, Lebanon, and India, reinforcing its position as a strategic player in global trade facilitation.
The AfDB’s planned $230 million financing package represents a critical intervention in addressing forex liquidity challenges and strengthening trade finance in Nigeria.
