“FIDELITY BANK IS A NICHE PLAYER, focused on the SME space and this US$50 million credit line will contribute to strengthening its presence in its key market segments. The Nigerian financial institution also continued to meet its ongoing credit obligations under the terms of previous support received from the African Development Bank”.
These words by Ebrima Faal, Senior Director, Nigeria Country Office of African Development Bank, AfDB; describe Fidelity Bank’s performance on SMEs. Ebrima Faal made the remarks after AfDB’s Board approved $50 million credit to Fidelity Bank for SMEs. The approval was given on October 10, 2018.
According to AfDB, SMEs account for 30 percent of Fidelity Bank’s loan portfolio. The US$50 million credit line facility is fully dedicated to financing micro, small and medium sized enterprises, MSMEs, with a minimum of 30 percent going to women-owned enterprises.
AfDB said the facility is also recognition of Fidelity Bank’s credit management and “strong track records” with the African Development Bank. Fidelity Bank had previously received US$18 million and US$75 million lines of credit from AfDB in 2001 and 2013, respectively.
AfDB said the selection of Fidelity Bank for this seven-year credit facility – with a grace period of two years, is based on its strong niche presence in the SME and mid-sized corporate space. The funds will, particularly, support women-owned enterprises in selected transformative sectors, amongst them are about to hundred SMEs in manufacturing, health and education.
The facility will augment Fidelity Bank’s liquidity, assist to meet the demand for medium-term funding to players in the target sectors, contributing to improving quality of lives, job and wealth creation and tax-revenue generation.
It will complement Nigerian government long-term development strategy, championed in the Vision 20:2020 Agenda. It also aligns with Nigeria’s Economic Recovery and Growth Plan 2017-2020, ERPG, which will eventually boost enterprise competitiveness and expand Nigeria’s economic base.
According to Nigerian government, the ERPG seeks to stimulate Nigeria’s economic growth, catalyze macro-economic stability, foster diversification of the economy, and enhance social inclusion as well as good governance.
This credit facility is in line with Fidelity Bank’s Ten-Year Strategy – 2013–2022. It also harmonizes with two of the Bank’s “High 5 Priorities”, – Industrialize Africa and Improve the quality of life for the people of Africa.
Fidelity Bank Plc was founded in 1987. It has grown from marginal position to become a stable banking institution. Presently, the Bank’s assets base place it 10th largest commercial bank in Nigeria. Fidelity Bank was listed on the Nigerian Stock Exchange in May 2005.
The Bank’s client base is placed about four million customers across the country. It operates from a network of over 240 branches and business offices; and supported by ATMs, Mobile and Electronic Banking and Agency Banking Channels.
In 2017, KPMG Banking Industry Customer Satisfaction Survey, BICSS, ranked Fidelity Bank 4th Best Bank in Nigeria in retail market segment.