Development Bank of Nigeria completes first recruitment, set to take off

Minister of Finance, Kemi Adeosun

The Federal Ministry of Finance has confirmed the completion of the recruitment of the Executive Management team of the proposed Development Bank of Nigeria (DBN).

The bank has therefore formally applied for the issuance of its operational license from the Central Bank of Nigeria (CBN), which is expected imminently, a statement by the Ministry of Finance, said on Thursday.

The DBN was conceived in 2014, but its take-off had been fraught with delays.

The Muhammadu Buhari led administration inherited the project and set a target of 2017 for its take-off.

The DBN will have access to US$1.3bn (N396.5 billion) which has been jointly provided by the World Bank (WB), KfW (German Development Bank), the African Development Bank (AfDB) and the Agence Française de Development (French Development Agency). The Bank is also finalising agreements with the European Investment Bank (EIB).

The operations of the DBN will not result in the elimination of the Bank of Industry (BOI), Bank of Agriculture (BOA) or any other existing development bank, the statement signed by Salisu Dambatta, director of Information, said.

The operations of the DBN is clearly distinct from other development banks as it is focused on supporting small businesses defined by size and not by sectors.

The DBN will provide loans to all sectors of the economy including, manufacturing, services and other industries not currently served by existing development banks thereby filling an important gap in the provision of finance to Micro, Small and Medium Enterprises (MSMEs).

As a wholesale bank, the DBN will lend wholesale to Microfinance Banks which will on-lend medium to long-term loans to MSMEs.

The MSMEs contribute about 48.47 percent to the Gross Domestic Products (GDP) of Nigeria but have access to only about 5 percent of lending from Deposit Money Banks (DMBs), the statement said.

The influx of additional capital from the DBN will lower borrowing rates and the longer tenure of the loans, will provide the required flexibility in the management of cash flows, giving businesses the opportunity to make capital improvements, and acquire equipment or supplies.

As the economy diversifies, the growth of the MSME sector will have a positive impact on the economy through employment generation, wealth creation and economic growth.


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  • Lawrence Azubuike

    This is a good development

  • deji 3SC (Up shooting)

    Recruitment??? When was the job advertised? Did they follow due process???

  • Rommel

    Just what Nigeria needs at this moment,a bank that could grant long term loans to MSME’s ,a step in the right direction obviously and I wonder why Dumbo could not implement these nice conceptions

    • Legend

      There were programs like that in Jonathan’s time. You need to ask yourself why saint Buhari has no new ideas.DBN was officially launched before Dullard of Daura took over! Though kudos to him for copying what is good.

    • Otile

      No, Nigeria does not need to borrow a long term loan of $30 billions to waste on parasitic core North. No right thinking person welcomes such concepts. It’s a step in the wrong direction, the dullard of Daura does not understand it.

  • Mufu Ola

    Bank of Industry is already performing the functions this bank is set to perform.When not beef up funding of BoI as the bank is doing well enough?

  • olat

    D Finance Minister should also work on ving co-operative bank as banker to all registered co-operative society. Co-operative society can keep their savings with co-operative bank and obtained twice or three times of their saving @ 2% interest rate, and their society savings served as collateral.
    Members applied for loan through their society and get paid through the co-operative bank. D economy can move faster with less bottle neck to obtain loans for existing business.

  • Abdullah Musa

    Too much reliance on foreign component.
    When the pound of flesh is demanded back it will scalp to the marrow.

  • John ‘femi Kenneth Lawal

    I do appreciate our amiable Finance Minister-Kemi Adeosun. She’s pragmatic and proactive. I am willing to APPROACH THE DBN WHEN IT BECOMES OPERATIONAL. THANKS TO MRS KEMI ADEOSUN , YOU ARE A DARLING… GO