UBA Announces N5 Billion Loan to Support Women-Owned Businesses in Nigeria
- The Bank of Industry (BOI) has provided a N5 billion loan facility to United Bank for Africa (UBA) to support the growth of women-owned micro, small, and medium-sized enterprises
- The loan, which offers a competitive 9% interest rate with a three-year tenor and a three-month repayment moratorium, aims to empower businesses and promote sustainable economic development
- UBA’s commitment to financial inclusion and economic empowerment will help businesses access affordable funding and expand their operations for long-term growth
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Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
The Bank of Industry (BOI) has granted United Bank for Africa (UBA) Plc a N5 billion loan facility to strengthen key economic sectors and encourage the expansion of sustainable and profitable companies in the country, particularly women-owned micro, small, and medium-sized enterprises (MSMEs).
Source: Getty Images
The facility, which is distributed through the Federal Government's MSME Fund, is intended to boost key economic sectors while providing reasonably priced funding to assist companies, with a particular emphasis on women-owned enterprises, green energy, education, and healthcare.
Speaking about the facility, Oliver Alawuba, Group Managing Director/CEO of UBA, emphasised the bank's dedication to promoting economic growth by empowering MSMEs, which he referred to as the "livewire of any developing economy."
He said:
“At UBA, we recognize the pivotal role MSMEs play in driving economic development, and how they constitute a sizeable portion of what drives our economic growth. It is in this vein that we have decided not to rest on our oars by facilitating initiatives dedicated to empowering businesses with the financial support they need to thrive.”
Alawuba maintained that, “By offering loans at a competitive 9% interest rate with a three-year tenor, we are removing the traditional barriers that hinder SME growth in Nigeria and Africa. And with this, our message to business owners is simple: Don’t let this once-in-a-lifetime opportunity elude you.”
Businesses would have enough time to stabilize before they start servicing the loans thanks to the facility's three-month principal repayment moratorium and maximum loan amount of N5 million per obligor.
Shamsideen Fashola, UBA's Group Head of Retail and Digital Banking, stated that the initiative would improve financial inclusion and put the country—and indeed the continent—on the path to sustainable development. He also emphasized the strategic significance of the targeted sectors to the country's ongoing growth.
“We are structuring this facility to align with our broader mission of financial inclusion and economic empowerment. For us at UBA, we will be targeting Green Energy, Education, Healthcare, and Women-Owned Enterprises, which are critical to Nigeria’s sustainable development,” he noted.
Continuing, he said, “This facility is structured to ensure that businesses in these sectors can access affordable funding, expand operations, and contribute meaningfully to the economy. We are excited to partner with BOI to make this a reality.”
Source: Getty Images
Alero Ladipo, Group Head, Marketing and Corporate Communications, also spoke at the loan facility presentation. He emphasized the government support and competitive interest rate, and urged company owners, particularly women, to take advantage of the program.
“What sets this program apart is its accessibility and affordability. We have worked closely with stakeholders to ensure the terms are business-friendly because we understand the challenges entrepreneurs face. I urge eligible businesses to visit any UBA branch or the bank’s official website to begin their application process right away,” Ladipo stated.
With 25,000 workers overall and more than 45 million clients worldwide, United Bank for Africa is one of the biggest employers in the financial industry on the African continent. UBA offers retail, commercial, and institutional banking services, promoting financial inclusion and using state-of-the-art technology. It operates in 20 African nations as well as the United Kingdom, the United States of America, France, and the United Arab Emirates.
UBA speaks on solutions
Legit.ng reported that some customers of United Bank for Africa Plc (UBA) were left stranded over the weekend as efforts to make transfers to other banks using the UBA mobile banking app were met in vain.
Legit.ng however observed that the transactions from UBA to UBA were not affected by this.
A few customers also complained that they are unable to perform other transactions such as buying airtime.
Source: Legit.ng
