Development Bank of Nigeria Plc (DBN), Nigeria’s largest wholesale lender, claimed it lent N631 billion to micro, small, and medium-sized firms (MSMEs) through financial institutions last year.
Over 313,000 MSMEs have received finance from the organization, creating over 900,000 employment nationwide.
At an interactive session, Dr. Tony Okpanachi, the bank’s Managing Director, revealed that adolescents and women receive the most credit, with the latter receiving 69% of the total.
These statistics represent optimism and success for countless Americans.
The International Labour Organization’s 2022 National Assessment of Women’s Entrepreneurship Development (WED) in Nigeria found that Nigerian women are eager to start their own businesses, but they face unique barriers to accessing financial and business development services. We’ve prioritized women’s help in the Nigerian MSME sector since they’re underserved,” he said.
DBN was created by the World Bank, European Investment Bank, and other development organizations to provide MSMEs with finance.
“Lenders should anticipate a surge in loan refinancing requests”
Okpanachi said the wholesale lender has lived true to its original principle, helping firms manage short-term and high-cost finances with the goal of scaling its green financing operation.
“With over 40 million MSMEs, accounting for 96% of all businesses, 84% of employment, and approximately 50% of the entire GDP, MSMEs make a remarkable contribution to our nation’s development,” he added, justifying the bank’s focus on small businesses.
“How can we boost these MSMEs?” How can we use their strength to boost agriculture, education, health, and industry to address energy poverty and tourism decline? How can we use them to fight climate change and green transitions?
According to the chief executive’s presentation, the development bank has given N13 billion to hospitality and tourism MSMEs and N12 billion to education ecosystem MSMEs.
Health earned N11.5 billion while technology startups and MSMEs received N11 billion, increasing efficiency, productivity, and market share.
Okpanachi stated many firms’ financial requirements and boost debt servicing. He advised banks to anticipate loan restructuring requests in the coming months due to premium motor spirit price increases.