Development Bank Provides N631 Billion In Support For Nigerian MSMES And 900,000 New Jobs
The largest wholesale lender in the nation, Development Bank of Nigeria Plc (DBN), reported that as of the end of the previous year, it had funded MSMEs to the tune of N631 billion through financial institutions.
According to the organisation, more than 313 000 MSMEs have accessed the money, which has generated more than 900,000 jobs nationwide.
Dr. Tony Okpanachi, the bank’s managing director, revealed during an interactive session that women and young people receive the majority of the credit, with the latter group receiving 69% of the total amount issued thus far.
“These numbers signify hope and prosperity for countless individuals and families across the nation. A 2022 study by the International Labour Organisation on National Assessment of Women’s Entrepreneurship Development (WED) in Nigeria found that women in Nigeria are highly interested in becoming entrepreneurs, but they face unique challenges to do so, such barriers access financial and business development services that are critical to formalising and growing their businesses. Recognising the underserved status of women within the Nigerian MSME sector, we have prioritised their support,” he said.
DBN was established as a unique platform for tackling the finance challenges encountered by MSMEs, working with the World Bank, European Investment Bank, and other development organizations.
According to Okpanachi, the wholesale lender has upheld the promise of its founding ideology by assisting businesses in overcoming financial obstacles, particularly those caused by short-term and expensive loans, in order to scale their green financing operations in the future.
With over 40 million MSMEs, representing 96% of all enterprises, 84.6% of employment, and around 50% of the overall GDP, MSMEs make a significant contribution to our nation’s development, he added, justifying the bank’s concentration on small businesses.
“However, we must ask ourselves: How can we propel these MSMEs to even greater heights? How can we leverage their strength to facilitate growth in crucial sectors such as agriculture, education, health and manufacturing to tackle challenges like energy poverty and struggling tourism sectors? How can we harness their potential to support green transitions and combat climate change?”
According to the chief executive’s presentation, the development bank has so far provided N13 billion in funding support to MSMEs operating in the hospitality and tourist industry and N12 billion to those in the education ecosystem.
With N11.5 billion allocated to the health sector and N11 billion allocated to technology startups and MSMEs, efficiency, productivity, and market share have all increased.
According to Okpanachi, the cost of servicing current loans has increased due to the increased financial needs of many firms. As an indirect result of a rise in the price of premium motor spirit, he urged banks to get ready for requests for credit restructuring in the upcoming months.
