We disbursed over N100 billion to MSMEs in 2019– DBN

Nigerian Economy
Naira notes

The Development Bank of Nigeria Plc said it has impacted the Nigerian Micro, Small and Medium Enterprises with a disbursement of over N100 billion to over 100,000 MSMEs.

This, it said, resulted in an additional job creation of 3,192 jobs in the financial year ended December 2019.

The Managing Director, Tony Okpanachi, disclosed this in his address at the DBN’s first virtual 3rd Annual General Meeting which held recently, in Abuja.

While giving a scorecard on the bank’s activities and contribution to the Nigerian economy, he said the bank working through its Participating Financial Institutions (PFIs) has facilitated increase in MSME revenue, as well as assets.

He said that DBN has focused on engendering gender equality in its loan distribution and empowered youth with 52 per cent of the total loan disbursed to these segments in 2019.

“Through our 27 Participating Financial Institutions, over N100BN was disbursed last year, impacting cumulatively over 100,000 MSMEs.

“So far, 3,192 jobs have been created leading to an increase of 10percent in MSMEs revenue and 6.8 percent increase in value of their land assets. Also, 52 per cent of loans disbursed in 2019 were to youths and women owned businesses. This is in our bid to promote economic empowerment and gender equality,” he said.

Mr Okpanachi also said that DBN has also set up a Credit Guarantee Subsidiary, Impact Credit Guarantee Company Limited with the aim of de-risking the MSME sector by sharing risks with the PFIs to encourage them to lend to this critical sector of the economy.

He added that DBN also delivered capacity building programs for MSMEs across the six geopolitical zones of the federation.

Mr Okpanachi assured shareholders that the Bank was on the right trajectory and focused its strategy on driving sustainable economic growth.

He said the Bank was currently expanding its distribution network to include other non-banking financial institutions and working on some concessions to PFIs as well as de-risking SME lending through the subsidiary, ICGL to increase participation.

He also said the strategy will also cover delivery of technical assistance to PFIs and capacity building programs for MSMEs all geared towards encouraging uptake of the DBN funds by PFIs for on lending.

In his remark, the chairman of the Bank, Shehu Yahaya, commended the federal government for its commitment and efforts as well as the selfless health workers for their dedication towards tackling the deadly COVID 19 pandemic.

He expressed his condolences to those who have lost loved ones while celebrating the courage of survivors.

He said “their gallantry gives us hope that we will emerge victorious from this deadly pandemic”.

The Development Bank of Nigeria Plc is a wholesale development finance institution, established by the Federal Government of Nigeria in collaboration with global development partners, (The World Bank, AfDB, Kfw, AFD and EIB), to address the major financing challenges facing Micro, Small and Medium Scale Enterprises (MSMEs) in Nigeria.

DBN carries out this function by providing financial institutions, predominantly Deposit-Money and Microfinance Banks with on lending facilities designed to meet the needs of this segment. The bank commenced operations in 2017.

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