The Development Bank of Nigeria (DBN) has announced a significant milestone, disbursing over N1 trillion to Micro, Small, and Medium Enterprises (MSMEs) through 79 participating financial institutions across the country. This achievement underscores the bank’s commitment to enhancing financial access for small businesses, which are vital drivers of Nigeria’s economic growth and job creation.
Reaching Underserved Businesses
During a recent media briefing in Lagos, the DBN’s Managing Director emphasized the bank’s dedication to inclusive financing. Impressively, over 69,000 MSMEs in economically disadvantaged states such as Borno, Yobe, Katsina, Zamfara, and Adamawa have benefited from DBN’s interventions. Furthermore, the bank reported that 74% of the beneficiaries were women, while 25% were youths, demonstrating a strong focus on gender equity and youth empowerment.
Beyond Financing: Capacity Building and Technical Assistance
The DBN goes beyond simply providing financial assistance. The bank has prioritized capacity building, training over 9,500 MSMEs across Nigeria through various programs designed to enhance their skills and sustainability. In addition, the DBN’s Technical Assistance Programme has supported 20 financial institutions in improving their MSME lending practices, which has translated to over 711,000 MSME beneficiaries and contributed to the creation of more than 1.2 million jobs since the bank’s inception in 2017.
Recognition and Future Goals
The DBN’s efforts have earned it national and international recognition, including “AAA” ratings from both Agusto & Co. and GCR. The bank has also received awards from the Global SME Finance Awards and was named the Best Project in Nigeria by the World Bank. Furthermore, the DBN has secured accreditation from the Green Climate Fund and consistently ranks high on the Transparency and Integrity Index.
Looking ahead, the DBN aims to expand its impact further. Over the next five years, the bank plans to increase its outstanding loans to N1.8 trillion, catalyze the creation of two million jobs, support two million MSMEs, and scale up green financing to between N75 billion and N100 billion. To achieve this, the DBN is looking to mobilize N3 trillion in debt and equity.
Strategic Objectives and Inclusive Growth
The DBN’s strategic objectives include a strong emphasis on inclusive growth. The bank aims to allocate 40% of its loans to enterprises owned by economically disadvantaged Nigerians and 20% to women-led firms. Additionally, the DBN plans to focus on green financing and support businesses operating in underdeveloped states, aligning its funding priorities with sustainability and regional inclusion goals.
Addressing Challenges and Fostering Collaboration
While the DBN has made significant strides in improving MSME financing, challenges remain. To address these, the bank emphasizes the need for policy reforms, increased collaboration with development partners, and innovative financing methods. By working together, the DBN and its partners can continue to bridge the financing gap and empower MSMEs to drive economic growth and create jobs across Nigeria.
