DBN and Its Impact Under Dr. Tony Okpanachi
By Patience Ikpeme
Bridging the MSME Financing Gap
Since its establishment in 2017, the Development Bank of Nigeria (DBN) has played a pivotal role in addressing one of the most pressing challenges in Nigeria’s economy—limited access to financing for Micro, Small, and Medium Enterprises (MSMEs). These enterprises are widely recognized as the backbone of the economy, contributing significantly to employment and GDP. However, their growth has often been stifled by stringent lending conditions, high-interest rates, and a lack of collateral.
DBN was created to bridge this gap, serving as a wholesale development finance institution that provides long-term funding and risk-sharing facilities to Participating Financial Institutions (PFIs). These PFIs, including commercial and microfinance banks, then extend loans to MSMEs under flexible and favorable conditions.
Since its inception, DBN has disbursed approximately ₦787.5 billion to over 494,819 MSMEs, with a significant focus on financial inclusion. Notably, 356,451 loans have gone to women-owned businesses, reinforcing the bank’s commitment to empowering female entrepreneurs. These figures underscore DBN’s role as a critical enabler of small business growth in Nigeria.
While DBN’s achievements have been commendable, much of its success is attributed to the visionary leadership of Dr. Tony Okpanachi, the Managing Director and Chief Executive Officer (CEO) since the bank’s launch in 2017. With over 30 years of banking experience, Okpanachi has driven DBN to become a leading financial institution dedicated to economic growth, innovation, and sustainability.
Dr. Tony Okpanachi – A Leader in Development Finance
At the helm of DBN is Dr. Tony Okpanachi, a seasoned financial expert with a strong academic and professional background in development economics and banking. His Ph.D. in Development Economics, an MSc in Economics from the University of Lagos, an MBA from Manchester Business School, UK, and degrees from Ahmadu Bello University have equipped him with the expertise to navigate complex financial landscapes and drive economic transformation.
Before joining DBN, Okpanachi served as the Deputy Managing Director at Ecobank Nigeria and held various leadership roles across East Africa. His vast experience in banking and financial services has been instrumental in shaping DBN’s strategic direction, ensuring that the bank remains committed to financial inclusion, capacity building, and innovative financing solutions for small businesses.
Under Okpanachi’s leadership, DBN has achieved a 100% loan repayment ratio, a rare feat in Nigeria’s banking sector. This success is largely due to the bank’s emphasis on loan structuring, risk management, and financial literacy programs that equip MSMEs with the necessary skills to utilize funds effectively.
One of the hallmarks of his tenure has been the development of financial products tailored to the unique needs of MSMEs. Unlike traditional banks that offer short-term loans with stringent repayment conditions, DBN provides long-term loans with flexible repayment options. This model allows businesses to grow sustainably without the burden of immediate financial pressure.
DBN’s Achievements and Contributions to Economic Growth
DBN’s impact under Okpanachi’s leadership extends beyond loan disbursement. Several initiatives and milestones stand out in the bank’s journey toward enhancing Nigeria’s financial landscape. Since its establishment, DBN has disbursed over ₦787.5 billion, positively impacting over 494,819 MSMEs across various sectors, including agriculture, manufacturing, trade, and technology. These interventions have led to the creation of more than 900,000 jobs, further strengthening the Nigerian economy.
A defining feature of Okpanachi’s leadership is his commitment to inclusivity. As of 2022, 69% of all businesses financed by DBN were women-owned MSMEs, highlighting a strong focus on gender empowerment. DBN has also prioritized youth entrepreneurs and businesses in underserved regions, ensuring that financing is accessible to all.
Recognizing that access to finance alone is insufficient, DBN has invested heavily in entrepreneurship training. Through specialized capacity-building programs, the bank trains MSME owners in business management, financial planning, and proposal writing. This initiative enhances their ability to effectively utilize funds and build sustainable businesses.
In a landmark achievement, DBN became accredited by the Green Climate Fund, securing access to $250 million for climate-related projects. This initiative positions DBN as a key player in Nigeria’s climate resilience efforts, supporting businesses involved in renewable energy, sustainable agriculture, and environmental conservation.
DBN has received several prestigious awards, including: SME Financier of the Year—Africa Award; Global Champion DFI Award at the Global SME Finance Forum Conference. These accolades recognize DBN’s outstanding contributions to MSME financing and economic development in Nigeria.
Okpanachi has been instrumental in building strong relationships with PFIs, ensuring seamless loan disbursement and high satisfaction levels among financial institutions. By fostering these partnerships, DBN has improved the efficiency and accessibility of its financial products.
The DBN Model and Future Outlook
DBN’s operational model sets it apart from conventional banks. Unlike retail banks that lend directly to businesses, DBN operates as a wholesale financial institution, channeling funds through commercial banks, microfinance banks, and other financial institutions. This approach: expands MSME access to finance by leveraging existing banking networks; reduces risk for traditional lenders, encouraging them to finance small businesses and ensures sustainability, as funds are strategically disbursed through credible financial intermediaries.
To further support its lending partners, DBN provides technical assistance and partial credit guarantees, reducing the risk associated with MSME lending. This risk-sharing model encourages more financial institutions to extend credit to small businesses, a sector traditionally seen as high-risk.
Under Dr. Okpanachi’s leadership, DBN continues to expand its reach and impact. Moving forward, the bank aims to: Scale up MSME financing to exceed ₦1 trillion in disbursements; strengthen digital lending platforms to improve access to funds; enhance sustainability initiatives, including green financing and expand financial literacy programs to reach more entrepreneurs across Nigeria.
DBN’s impact on Nigeria’s economy is undeniable. Through strategic leadership, innovative financial solutions, and a commitment to inclusivity, the bank has transformed the financing landscape for MSMEs.
At the heart of this transformation is Dr. Tony Okpanachi, whose vision, expertise, and dedication have positioned DBN as a catalyst for economic growth and sustainable development. As the bank continues to evolve, its contributions to entrepreneurship, job creation, and financial inclusion will remain instrumental in shaping Nigeria’s economic future.
