Institutional Assessment and Capacity Building of Participating Financial Institutions Onboarded by Impact Credit Guarantee Limited, With the Aim to Improve the Uptake of Credit Guarantee Products

• Country: Nigeria
• Summary: Institutional Assessment and Capacity Building of Participating Financial Institutions Onboarded by Impact Credit Guarantee Limited, With the Aim to Improve the Uptake of Credit Guarantee Products
• NGT Ref No: 57954509
• Deadline: 25 Oct 2021
• Financier:
• Purchaser Ownership: Government
• Tender Value: Refer Document
• Notice Type: Tender
• Document Ref. No.: NG-DBN-230977-CS-QCBS
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• Description:
• Expression of Interest are invited for Institutional Assessment and Capacity Building of Participating Financial Institutions Onboarded by Impact Credit Guarantee Limited, With the Aim to Improve the Uptake of Credit Guarantee Products. The Development Bank of Nigeria (DBN) Plc has received a loan from the International Bank of Reconstruction and Development (IBRD) and intends to apply part of the proceeds of this loan in engaging a qualified consulting firm to provide Technical Assistance (TA) to select Participating Financial Institutions (PFIs), aimed at expanding the scope of their lending to Micro, Small and Medium Enterprises (MSMEs), through credit guarantee products. The goal of the TA is to augment the level of formal credit and financial services made available to MSMEs, by improving the capacity of PFIs to increase their uptake of Impact Credit Guarantee Limited-s credit guarantee products (ICGL is a wholly owned subsidiary of the Development Bank of Nigeria); recommend appropriate solutions to identified gaps and facilitate the deployment of solutions. Capacity building shall cover areas such as technology, product development, and closing the MSME information asymmetry. Five eligible PFIs have been selected for this TA from the pool of PFIs currently cooperating with ICGL. They include four commercial banks and one microfinance bank. Selection was based on need and potential to ramp up guarantee volumes from these PFIs. The selection criteria are as follows; • Length of relationship between ICG Land PFI: PFIs in relationship with ICGL for not less than 6 months. • Volume of business: Average monthly guarantee volume of less than N500million. • Capacity of PFI to do more business with ICGL, based on the size of its MSME portfolio relative to the business with ICGL. • Level of difficulty currently experienced with the PFI. In addition to the review of selected PFIs, this TA will cover the review of ICGL-s products and the development of products necessary to support the implementation of ICGL-s COVID-19 strategy. The consultant is expected to support the selected PFIs through a two-phase process: (1) Phase one entails undertaking an institutional assessment of the selected PFIs- specific needs and the development of a detailed work plan for each PFI, including suggestions as regards product design; identification of possible solutions most suited to address identified gaps; and the development of products/programs required for the implementation of ICGL-s COVID-19 strategy. (2) Phase two involves supporting the roll-out of agreed solutions from phase one, The above outlined services are described in detail in the Terms of Reference which can be found on DBN-s website at the following link: bit.ly/ta2pfiTOR The DBN invites eligible consulting firms (“Consultants”) to indicate their interest in providing these Services. Interested Consultants should provide information demonstrating the required qualification and experience to perform these Services. Minimum shortlisting criteria are: (1) Evidence of vast experience (local and/or international) with similar projects related to MSME credit guarantee and financing. (2) Evidence of experience with other credit guarantee funds. (3) Evidence of experience in setting up and training staff in MSME finance units of large commercial PFIs; in supporting PFIs to reach out to MSMEs beyond their traditional client base, including women-owned/operated MSMEs; and in the utilization of digital solutions. (4) Evidence of extensive capacity building experience related to strengthening the understanding and usage of credit guarantees to facilitate lending, appropriate lending techniques (e.g., cash-flow based), use of digital solutions and process automation tailored to emerging market environments where MSMEs- financial record keeping and access to collateral is limited, and where weaknesses in the financial infrastructure inhibit efficient foreclosure on collateral.
• Documents:

 Tender Notice