(Ecofin Agency) - Union Bank of Nigeria will benefit from a $40 million facility from the International Finance Corporation (IFC) as part of the institution’s Global Trade Finance Program. This allows the Nigerian bank to benefit from the program's guarantee facility which protects against the risk of non-payment on commercial transactions.

Union Bank plans to increase its lending to local commercial enterprises. By joining IFC’s Global Trade Finance Program, it will have the opportunity to establish partnerships with international banks that are also members of the program; partnerships that may lead to loan agreements for Nigerian companies. Moreover, the Union Bank of Nigeria will also be able to establish bank correspondences with new financial institutions.

"Even in these peculiar times, we remain focused on contributing to economic growth by developing tailored solutions that help our customers harness the teeming opportunities that still exist in the Nigerian market,” said Emeka Emuwa, CEO of Union Bank of Nigeria.

Fifteen years after its inception, the IFC's Global Trade Finance program has supported many financial institutions on the continent. In addition to Union Bank in Nigeria, Merchant Bank has also joined the program.

Chamberline MOKO