AfDB Proposes $230m Trade Finance Boost For Access Bank

The African Development Bank (AfDB) is planning a $230 million trade finance package for Access Bank Plc to enhance trade finance and provide foreign exchange liquidity for small and medium-sized enterprises (SMEs) in Nigeria.

A recent Project Summary Note outlines the facility’s structure and expected impact on Nigeria’s trade ecosystem. The package comprises a $170 million Trade Finance Line of Credit (TFLoC) with a 3.5-year tenure to support SMEs and corporate clients with FX liquidity, and a $60 million Transaction Guarantee (TG) with a three-year tenure, allowing Access Bank to act as an Issuing Bank while the AfDB provides risk coverage for trade transactions.

The initiative is designed to bridge Nigeria’s trade finance gap, ensuring businesses can settle obligations, access international markets, and secure essential imports such as raw materials, equipment, and intermediate goods. It aligns with Nigeria’s 2020-2024 Country Strategy Paper (CSP) and AfDB’s 10-year Strategy (TYS) 2024-2033, promoting economic revitalisation and enterprise development.

The financing facility will be governed by two separate legal agreements, with Central Bank of Nigeria (CBN) approval required before disbursement. AfDB’s Private Sector and Industrial Development Finance (PIFD) department will oversee approvals for individual trade finance guarantees.

Beyond addressing forex liquidity constraints, the package is expected to support private sector growth, boost women-led businesses, and facilitate access to critical goods like agricultural inputs and capital equipment.

As a Tier 1 financial institution with operations across Africa, Europe, and the Middle East, Access Bank plays a crucial role in global trade facilitation. The AfDB’s intervention reinforces its commitment to strengthening Nigeria’s trade and industrial sectors amid ongoing dollar shortages.