Accion Nigeria’s key sponsor is ACCION International. ACCION is a U.S. based private nonprofit organization founded in 1961, has been engaged in microfinance over the past 30 years. ACCION has been a leader in the commercialization of the microfinance industry, dedicated to the integration of microfinance into the formal financial sector. ACCION International is also the sponsor of ACCION Investments in Microfinance (AIM) an investment company with a capitalization of $18 million focusing on Latin America, the Caribbean, and Africa. AIM provides equity and quasi-equity capital to institutions specializing in microfinance and IFC has a $3million equity investment in AIM for a 16.62% shareholding. Accion Nigeria’s proposed shareholders are: AIM (22.5%), IFC (12.6%), Nigerian commercial banks (64.9%).

The project cost is $5 million consisting of initial shareholder capital in Accion Nigeria. IFC’s will invest $630,000 in equity for a 12.6% ownership in the MFI. Initial shareholder capital is $5 million.

1.89 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	1.89

* These investment figures are indicative

The project, a greenfield microfinance institution (MFI), will be located in Lagos, Nigeria. Over time, the MFI will open branches in other major urban centers in the South East and in the North and expand nationally as conditions permit.

- Development Impact: Microenterprises and small businesses account for the major share of the private sector and employment for low-income populations in Nigeria and other developing countries. Yet, despite their importance, these businesses face serious obstacles to viability and growth because they have limited access to financial services such as credit, savings, payment and money transfers. The establishment of a financial institutions specialized in offering financial services to this sector, is expected to be strongly developmental -- in terms of its economic impacts, stimulus for business growth, employment creation and promotion of commercially-oriented microfinance techniques. The project will support IFC’s Africa strategy to establish links between the financial system and the informal sector of the economy, through the establishment of savings banks, credit cooperatives, microfinance institutions and business incubators. - IFC Role: IFC has a strong track record as risk-taking investor, strategic advisor and technical assistance provider to financial institutions, and has played a significant role in developing commercial microfinance globally. IFC’s role in developing Accion Nigeria has contributed to attracting other private sector investors to participate in the project, thus laying a foundation for the growth of commercial microfinance in Nigeria.

This is a Financial Intermediary (F1) Type 1 category project according to IFC’s environmental review procedures. The project sponsor, AIM, will be required to develop an environmental management system that will require that Accion Nigeria’s lending operations meet Nigeria’s environmental, health and safety requirements, and be consistent with IFC’s Microfinance Exclusion List. IFC will work with AIM to develop an environmental review capacity. Depending upon IFC’s assessment, environmental training may be required. AIM will provide IFC with an annual environmental performance report on all it’s invest companies.
Location of environmental documents in locally affected community