With unfavourable economic conditions and lack of financial support affecting business growth in Nigeria, the Development Bank of Nigeria (DBN) has provided succour to the Small and Medium Enterprises (SMEs) by facilitating the much-needed credit facility needed for their operations.
About three into its operation, the bank has reportedly facilitated loans worth several billions of Naira to thousands of Micro, Small and Medium Enterprises (MSMEs).
Speaking at the bank’s 2019 Inaugural Lecture on Monday, the Chairman, Dr. Shehu Yahaya, acknowledged the effect of unemployment and poverty on the economy, saying the bank had invested into economic recovery with its credit facility.
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According to the Chairman, DBN has disbursed more than N70 billion to over 50,000 MSMEs.
“For the DBN, it is early days yet. But we can say that in the first one and a half years of commencement of operation, the bank has lent more than 70 billion Naira and impacted on more than 50,000 MSMEs,” he stated.
Quoting the World Bank Mid-Term Review, Yahaya noted that the bank had demonstrated a high sense of professionalism while not defaulting on any corporate governance standards.
“DBN is institutionally operational and is fully in compliance with prevailing regulations, with exceptional quality of corporate governance standards.
“In the short period since the DBN became operational in late 2017, it has already established a strong record for effectiveness and professionalism as evidenced by PFIs,” the bank chairman concluded.
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About DBN: The Development Bank of Nigeria (DBN) was conceived by the Federal Government in collaboration with global development partners to address the major financing challenges facing Micro, Small and Medium Scale Enterprises (MSMEs) in Nigeria.
Its mandate is to alleviate financing constraints faced by MSMEs and small corporates in Nigeria through the provision of financing and partial credit guarantees to eligible financial intermediaries on a market-conforming and fully financially sustainable basis.
