The Development Bank of Nigeria (DBN) is scaling up its commitment to Nigeria’s Micro, Small, and Medium Enterprises (MSMEs) sector, with plans to grow its outstanding loan portfolio to over N1.8 trillion as part of its new five-year strategic plan.
The DBN’s Managing Director, Tony Okpanachi, stated this while speaking with newsmen in Lagos.
He added that the bank is looking to mobilise N3 trillion in debt and equity to boost access to finance for MSMEs, which is a critical sector for Nigeria’s economic growth and job creation.
“We want to scale up what we’ve done in the first five years. There’s still a lot to be done in Nigeria, and we are very aspirational in our approach,” Okpanachi said.
Inclusive growth at the core
The Managing Director added that beyond the expansion of its loan portfolio and funding, DBN’s strategic objectives include a strong emphasis on inclusive growth.
According to him, DBN’s goal is to allocate 20% of its loans to women-led businesses and 40% to enterprises owned by economically disadvantaged Nigerians.
- In addition, DBN plans to double down on green financing and support businesses operating in underdeveloped states, aligning its funding priorities with sustainability and regional inclusion goals.
- With this strategic scale-up, he said DBN is aiming to create at least two million jobs, both directly and indirectly, over the next five years.
- According to him, the bank has already enabled 1.2 million jobs in its first five years of operation.
“We want to do at least two million in terms of job creation. That means both direct and indirect job creation.
“Along the profitability side, of course, we want to be financially sustainable. So we’re not taking our eyes off financial sustainability,” he said.
“We’re targeting sectors like manufacturing and agriculture—areas that are labour-intensive and hold the potential to absorb large segments of the workforce,” he added.
Sustainable growth through local and global partnerships
To meet its ambitious goals, DBN is also looking to expand its funding base through a mix of local and international sources.
- The bank is currently in talks with international partners and is exploring domestic capital markets, including a planned bond programme, subject to favourable macroeconomic conditions.
- Okpanachi explained that DBN’s model as a wholesale development finance institution means it doesn’t lend directly to businesses but works through financial intermediaries, multiplying its impact across sectors.
“Strategically, we’re working on three fronts—expanding our funding sources, deepening current partnerships, and leveraging existing resources to attract new ones,” he said.
What you should know
Just recently, DBN announced that it has disbursed over N1 trillion so far to Micro, Small, and Medium Enterprises through 79 participating financial institutions across the country.
- It also revealed that its support reached more than 69,000 MSMEs operating in economically disadvantaged states such as Borno, Yobe, Katsina, Zamfara, and Adamawa.
- According to the bank, 74% of the beneficiaries of its financial interventions were women, while 25 per cent were youths.
In terms of human capacity development, the bank noted that it had trained more than 9,500 MSMEs across Nigeria.
