Development Bank of Nigeria Plc (DBN), the country’s leading wholesale lender, said it provided a total funding of N631 billion to micro, small and medium-scale enterprises (MSMEs) through financial institutions as at end of last year.
The funding, according to the institution, has been accessed by over 313, 000 MSMEs ad created more than 900,000 jobs across different parts of the country.
At an interactive session, the Managing Director of the bank, Dr. Tony Okpanachi, disclosed that youths and women are the highest beneficiaries of the credit with the latter accounting 69 per cent of the amount disbursed so 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.
Working with the World Bank, European Investment Bank and other development institutions, DBN was set as a special platform for addressing funding constraints faced by MSMEs.
Okpanachi said the wholesale lender has lived up to the expectation of its founding philosophy, supporting businesses to navigate the constraint of especially short-term and high-cost funds with the aspiration to scale its green financing operation going forward.
Rationalising the bank’s focus on small businesses, he said: “With over 40 million MSMEs, accounting for 96 per cent of all businesses, 84 per cent of employment and approximately 50 per cent of the entire GDP, MSMEs make a remarkable contribution to our nation’s development.
“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?”
So far, the development bank has extended N13 billion in financing support to MSMEs operating in the hospitality and tourism sector and N12 billion to those in the education ecosystem, according to the chief executive’s presentation.
The health sector received N11.5 billion while technology startups and MSMEs received N11 billion resulting in higher efficiency, more productivity and expanded market share.
Okpanachi said the funding needs of many businesses and increase the burden of servicing existing loans. He called on banks to prepare for requests for credit restructuring in the coming months as an indirect consequence of an increase in the price of premium motor spirit.
