- Disburses N100bn loan
- Holds 3rd AGM virtually
BY EDMOND ODOK, ABUJA – Development Bank of Nigeria (DBN) Plc says over N100 billion was disbursed to more than 100,000 Micro, Small and Medium Enterprises (MSMEs) nationwide towards boosting their businesses and engendering the country’s economic growth in the financial year ended December 2019.
According to the Bank, this intervention cumulatively resulted in the creation of over 3,192 additional jobs and employment generation through the MSMEs.
DBN’s Managing Director, Tony Okpanachi, while giving a scorecard on the bank’s activities and contribution to the Nigerian economy over the psst years, said the bank, working through its Participating Financial Institutions (PFIs), has continued to facilitate increase in MSMEs’ revenue, as well as assets’ growth.
Okpanachi disclosed this in his address at the DBN’s 3rd Annual General Meeting (AGM) held virtually in compliance with social distancing guidelines issued by the Federal Government and National Centre for Disease Control (NCDC).
He said DBN also focused on engendering gender equality in its loan distribution processes as well as empowering youths with about 52 per cent of the total loan disbursements to these segments in the year under review.
According to him, “Through our 27 Participating Financial Institutions, over N100 billion was disbursed last year, impacting cumulatively over 100,000 MSMEs.
“So far, 3,192 jobs have been created leading to an increase of 10% in MSMEs revenue and 6.8% increase in value of their land assets.
“Also, 52% of loans disbursed in 2019 were to youths and women owned businesses. This is in our bid to promote economic empowerment and gender equality.”
Okpanachi further said DBN has constituted 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 and improve lending to this critical sector of the economy.
In addition, the DBN boss said the Bank has delivered capacity building programs for MSMEs across the six geopolitical zones of the Federation, and assured shareholders the Bank remains on the right trajectory with its strategies focused on driving sustainable economic growth in the country.
On current plans at expanding its distribution network to include other non-banking financial institutions, Okpanachi said the Bank is working on some concessions to PFIs as well as de-risking of SME lending through the subsidiary, ICGL to increase participation.
He said the strategy covers delivery of technical assistance to PFIs and capacity building programs for MSMEs aimed at encouraging uptake of the DBN funds by PFIs for on lending to interested customers and thriving businesses
Also speaking at the AGM, Chairman of the Bank, Dr Shehu Yahaya praised the Federal Government’s commitment as well as selfless efforts and dedication of health workers in containing the deadly COVID-19 pandemic in Nigeria.
Dr Yahaya, who condoled those that have unfortunately lost their loved ones to the virus, however said the nation must celebrate the gallantry of survivors, saying; “their gallantry gives us hope that we will emerge victorious from this deadly pandemic”.
Established by the Federal Government, in collaboration with global development partners (The World Bank, AfDB, KfW, AFD and EIB) to address the major financing challenges facing MSMEs in Nigeria, DBN is a wholesale development finance institution,
In its mandate delivery, the DBN, which commenced operations in 2017, provides financial institutions, mostly Deposit Money Banks (DMBs) and Microfinance Banks (MfBs) with on lending facilities designed to meet the needs of this segment.