The Development Bank of Nigeria (DBN) has announced that it has disbursed over N1 trillion in loans to micro, small, and medium enterprises (MSMEs). The bank is now working toward raising its debt and equity capital to N1.3 trillion within the next five years. According to DBN’s Managing Director, Tony Okpanachi, the bank’s intervention has positively impacted more than 69,000 MSMEs in economically underserved states such as Borno, Yobe, Katsina, Zamfara, and Adamawa. DBN was established by the Federal Government of Nigeria in partnership with global development institutions to address the funding constraints faced by MSMEs and to support job creation efforts across the country.
Okpanachi reported that the bank has so far supported 711,819 MSME beneficiaries, leading to the creation of 1.2 million jobs. Additionally, 20 participating financial institutions (PFIs) have been empowered through the DBN Technical Assistance Programme.
He noted that 74% of beneficiaries are women, and 25% are youths. Furthermore, 40% of disbursed loans were allocated to women-led MSMEs. The bank also highlighted that N75–N100 billion remains in outstanding green financing.
Regarding the planned N1.3 trillion capital raise, Okpanachi emphasized that the bank aims to broaden its funding sources to enhance its capacity to serve MSMEs. He also mentioned ongoing discussions with several development partners interested in collaborating with DBN.
“Strategically, we have to first expand our sources of funding. Two, deepen [our relationship] with the existing ones. How can we get more? Three, how can we use existing ones to catalyse additional ones.
“So, a lot of other partners want to come into Nigeria, work in Nigeria, and because of the reputation of DBN, want to use DBN.
“They want to work with DBN. We need to crowd it in for us to be able to make this impact we’re talking about. So, that is what I was saying, both in terms of debt and equity.
“We have had some debt sheets in terms of lending; some debt sheets, which we will not go into full detail. We have some debt sheets, as well, from the time we knew we had some funding coming in, some from the AfDB, some from KFW, and then we had another conversation with other partners.
“In addition to that, we are trying to raise funds locally. We have a bond programme that will go out on the first phase. So, if the macro becomes favourable, we will do an additional phase.”
The MD further noted that the bank has revealed a five-year strategy to scale up its activities by reaching over two million MSMEs and growing guarantees issued to N500 billion.
He pointed out that the bank is targeting sectors with huge potential for job creation like agriculture, manufacturing and renewable energy.
“So we are consciously looking at what we find in those sectors that are more labour-intensive.
“Even when we are doing green energy, we are looking at manufacturing, where they are recruiting, where they have more people. So, we are deliberate in terms of working with sectors where we will make money. So, it is a strategic move we are making,” he said.
