DBN Secures Approval for $2.5m Investment in Youth Entrepreneurship Bank
…Surpasses N1tr Disbursement Milestone
By Patience Ikpeme
The Development Bank of Nigeria (DBN) has obtained shareholder approval to invest $2.5 million in equity into the proposed Youth Entrepreneurship Investment Bank (YEIB), a novel initiative slated to commence operations next year.
This significant development coincided with the announcement that DBN has reached a cumulative disbursement of N1 trillion to Micro, Small, and Medium Enterprises (MSMEs) since its inception in 2017.
The approval for the YEIB investment was granted during DBN’s 8th Annual General Meeting (AGM) held in Abuja, following a presentation of the bank’s financial performance for the year 2024.
The Youth Entrepreneurship Investment Bank represents a strategic collaborative effort involving DBN, the African Development Bank (AfDB), and the Nigerian Sovereign Investment Authority (NSIA).
This new financial institution is designed to function as a dedicated investment vehicle with the specific aim of supporting businesses owned and operated by young entrepreneurs across Nigeria. This strategic move underscores DBN’s ongoing commitment to broadening its influence within Nigeria’s development finance landscape.
According to the Managing Director and Chief Executive Officer of DBN, Dr. Tony Okpanachi, this investment aligns directly with the bank’s core mission of fostering economic growth through enhanced financial inclusion and the empowerment of Nigeria’s youth.
“Youth Entrepreneurship Investment Bank is an initiative we’re working on with the African Development Bank and the NSIA. What we’ve got today is the approval of our shareholders to take an equity stake in that bank,” Dr. Okpanachi explained.
Dr. Okpanachi clarified that YEIB will not operate as a traditional commercial bank. Instead, it will function as an investment platform specifically designed to channel funding into businesses led by young people. He added that the current plan involves finalizing the necessary incorporation processes and legal framework by the end of the current year, with the expectation that operations will commence in early 2026.
“This is not your regular conventional commercial bank. It’s an investment vehicle. We will provide equity investments in youth-owned businesses. NSIA is taking the lead in equity, and DBN will also invest. The door is open to strategic global partners, and discussions are ongoing with several interested institutions,” he stated.
The institutional shareholders backing DBN include the Federal Government of Nigeria, the World Bank, the European Investment Bank, the French Development Agency (AFD), the German KFW, and the African Development Bank.
While DBN and NSIA will act as equity investors in this new venture, the AfDB is expected to contribute through debt financing, thereby increasing the total capital available to fund eligible youth-led enterprises.
Dr. Okpanachi also noted that this investment represents DBN’s second significant strategic investment, following the establishment of its wholly owned subsidiary, the Impact Credit Guarantee Company Limited (ICGL), which provides partial credit guarantees as part of DBN’s broader mandate.
“Having received shareholders’ approval, the next step is to obtain the necessary clearance from the Federal Ministry of Finance before finalizing the structure with AfDB. This new initiative aims to create employment and stimulate entrepreneurship across the country,” he added.
Adding his remarks at the AGM, the Chairman of DBN, Mr. Kyari Bukar, stated that DBN achieved a significant milestone of N1 trillion in total disbursements to MS He assured stakeholders that “The Bank will remain steadfast in offering financial support, capacity building and advocating for MSMEs in Nigeria.”
Mr. Bukar conveyed the bank’s ongoing commitment, stating, “As we move forward, DBN remains fully committed to its mandate of accelerating sustainable economic development through MSME empowerment.”
He further outlined DBN’s strategic direction, noting, “Our focus will be on deepening financial inclusion, leveraging technology for greater impact, and fostering partnerships to drive innovation and scalability.”
In addition to the new strategic initiative and the disbursement milestone, DBN reported positive financial results for the 2024 financial year. The bank disclosed that its cumulative loan disbursements to Micro, Small, and Medium Enterprises (MSMEs) through Participating Financial Institutions (PFIs) exceeded N1.06 trillion, marking a substantial 35 percent increase compared to the previous year.
In 2024 alone, DBN disbursed N273.13 billion in loans, representing a significant 75 percent increase from the N155.7 billion disbursed in 2023. The bank provided support to 711,819 end-borrowers during the year, up from 494,819 in 2023, indicating a 44 percent increase in reach.
A notable aspect of DBN’s support was its focus on economically disadvantaged regions. Over N49 billion was channeled to 69,182 MSMEs located in states such as Borno, Adamawa, Yobe, Katsina, and Zamfara, contributing to efforts aimed at economic stabilization in fragile and underserved communities.
During the same financial year, DBN converted N20.49 billion worth of debt securities held in ICGL into equity, acquiring an additional 20.49 billion shares at N1 per share. At the AGM, the shareholders also approved a dividend payout of N5.83 billion for the 2024 financial year end, amounting to N58.35k per share.
