Managing Director of the Development Bank of Nigeria (DBN) Mr Tony Okpanachi revealed the bank will give loans with a maximum tenure of up to 12 years. He also elucidated on the bank’s plans. Here are key highlights of the bank’s plansas revealed by Mr Okpanachi;
- The bank plans to start lending in August this year.
- Loans will be given to commercial banks and micro-finance banks.
- The bank will give loans with a maximum tenure of 12 years.
- The development bank intends raising additional capital within the next three to five years.
Though a tenor of up to 12 years is rare in the lending space.
The Development bank was conceived in 2014 by the Goodluck Jonathan administration. The banks focus is lending to Medium and Small scale Enterprises (MSMEs). Funding partners for the bank include the World Bank, Kfw development bank of Germany, African Development Bank (ADB) and the French Development Agency (FDA).
The bank’s goals dovetail into the focal points of the current administration’s Economic Recovery and Growth Plan (ERGP). The plan aims to reduce the reliance on the oil sector and make Nigeria self-sufficient in several crops such as rice and tomatoes. Nigeria’s economy slipped into recession in the second quarter of 2016, due to a fall in crude oil prices.
