DBN’s lifeline to MSMEs, others hit N230bn in 5 years
The Development Bank of Nigeria (DBN) has extended facilities totalling N230 billion in a space of five years to Nigerian businesses cutting across manufacturing and Micro Small and Medium Enterprises (MSMEs) sector.
Managing Director/CEO of DBN, Dr. Tony Okpanachi confirmed the figures in Lagos while presenting the progress report and achievements of DBN over the past five years of its operation as a wholesale development finance institution.
Okpanachi said said DBN provided financing support to its participating financial institutions to the tune of N631 billion as of December 2022, and described the bank’s story as one on a mission to empowering MSMEs and propelling sustainable development across all sectors of the Nigerian economy.
“Our experience has been nothing short of remarkable, filled with much learning and of course, resilience, amidst the diverse headwinds that have sought to inhibit the bank’s progress in our nascent space of wholesale development finance”.
“Over 313,000 MSMEs have benefited from this support, leading to the creation of more than 900,000 jobs. These numbers signify hope and prosperity for countless individuals and families across the nation.”
He further explained that the bank also extended its financing support to various other sectors, recognising their importance in the overall development and prosperity of the Nigerian economy.
“More than N230 billion has been channelled to support small businesses in the Trade and Commerce sector over the past 5 years leading up to December 2022 he said ”
He described the manufacturing sector an important aspect of the Nigerian economy that has been supported by the bank. According to him, the bank supported MSME players in the sector with more than N69 billion in financing.
“For the agricultural sector, we have provided N27 billion to Agro-MSMEs, while in the Hospitality and Tourism Sector, DBN has provided N13 billion in financing support to MSMEs operating in the hospitality and tourism sector.
“In the Educational Sector, DBN allocated N12 billion in financing to support quality education in Nigeria, with the Health Sector, having N11.5 billion in financing support.
“For the nation’s fast rising Technology Sector, we have allocated N11 billion to the technology sector, supporting businesses involved in technology and innovation initiatives.
Furthermore, DBN, over the years has taken a customer-centric approach to product development, helping the bank to meet the diverse needs of different segments and regions within the MSME ecosystem.
Okpanachi said the MSME sector is faced with a plethora of challenges. “To address these gaps, DBN has maintained its strong commitment to innovative product development, developing specialized offerings such as the Long-Term Finance (LTF) product to support the PFIs in providing longer-tenor financing to the end-borrowers”.
“The bank also developed the Green Finance product to support businesses facilitating green transitions through renewable energy, sustainable agriculture, sustainable waste management, and so on. The Non-Interest Banking (NIB) product was developed to support small businesses, particularly those that are financially excluded and located in economically challenged regions.
The Gender Finance Framework developed by the Bank is another attempt to increase the share of women entrepreneurs benefiting from our financing. Over the years, these specialized solutions have enabled us to catalyse more impact on the last-mile enterprises, improve access to finance, and support the development of MSMEs across different segments and locations”, he said.
Okpanachi said the bank in addition gave commitment to addressing climate change policy.
“As a responsible and sustainability-driven institution, we also recognize that there is a need to support the fight against climate change. Climate change has far-reaching implications. Key sectors such as agriculture, energy, water resources, and infrastructure face significant disruptions.
Extreme weather events and rising sea levels damage critical infrastructure, disrupt supply chains, and increase the costs of disaster response and recovery. The economic stability and sustainable development of Nigeria are also heavily dependent on addressing climate change”
Okpanachi stated that “this is why DBN has actively embraced initiatives to promote environmentally-friendly practices and increase its support for businesses in the Green economy. We have actively been participating in global climate change forums, including COP26, COP27, and Finance in Common Summit where we demonstrate our commitment to addressing climate change and financing sustainable development.
In addition, we have established Green Clubs in some secondary schools in Nigeria, to instill environmental consciousness in the younger generation. DBN is also undergoing the accreditation process to be the first Direct Access Entity (DAE) to the Green Climate Fund. Through offerings like the Interest Drawback Program, we also incentivize lending to green and environmentally-friendly businesses, contributing to a greener and more sustainable future”, he said.
